Retail Money Shifts From Crypto to Event Contracts, Says Eric Liu: Could This Explain Why Dogecoin and XRP Are Lagging Behind Bitcoin?

Retail investors may be abandoning crypto for a surprising new playground, and Dogecoin and XRP holders could be paying the steepest price. But is a mass exodus really driving their losses, or does a simpler market force explain everything?

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Retail traders are pulling their money and focus away from cryptocurrency, according to Eric Liu, co-founder of Vanda Research, which tracks individual investor trends. If Liu is right, this shift may help explain why Dogecoin (CRYPTO: DOGE) and XRP (CRYPTO: XRP)—two cryptocurrencies mainly driven by retail investors—have fallen more than Bitcoin (CRYPTO: BTC) over the past year.

As of October 9, 2026, Dogecoin trades around $0.085, about 88% below its 2021 all-time high of $0.73. Meanwhile, XRP trades around $1.40, and Bitcoin trades near $82,600.

So, is the exodus of retail money from crypto why Dogecoin and XRP are falling behind Bitcoin, or is there a simpler reason for these trends?

Vanda’s Eric Liu Sees Retail Money Shifting Away From Crypto

Liu shared his thoughts on Schwab’s On Investing podcast released on October 2. He observed that retail trading activity in stocks and crypto has moved in the opposite direction from event-contract platforms. These platforms allow traders to buy contracts tied to outcomes like Federal Reserve rate decisions. “You are seeing a share shift happening,” Liu remarked, suggesting that as retail cash moves into one market, it corresponds to a decline in another.