Could be thermostat is wearing out if its a new "thing" you are noticing for normal driving
T-stat should be a 192-195deg, when coolant gets to 190deg or so, +/- 3deg, t-stat will open a bit and send hot coolant to upper radiator, this causes COLD coolant to come in from lower rad hose to water pump
This can cause a drop in temp gauge if its very COLD coolant, but I wouldn't expect a drop too far, i.e. down to C
But if t-stat was opening too far then yes it would drop alot more
t-stats still use WAX to sense temperature
The wax is in a sealed container, there is a piston and rod at one end of the container
A spring holds t-stat closed
As the wax is heated up it expands and pushes on the piston and rod which overcomes spring pressure to open the t-stat a bit, allowing coolant to flow OUT to upper radiator
As the COLD coolant comes in and circulates it SHOULD cause wax to cool down closing t-stat a bit
This opening and closing "a bit" should reach an equilibrium, operating temp, based on engine use(demand/load), radiator cooling capacity, and outside temp.
It could be the wax is expanding too much, this is a "fail safe" for a t-stat, they are suppose to stick OPEN when they fail, which is much better that staying CLOSED, lol
Or it could also be your Temp Sender is acting up, so t-stat is working fine just the "reporting" of the temp is acting up.
Feel your heater air temp when temp on gauge drops, if heater temp is also dropping then t-stat is opening too far and gauge/sender is correct
If heat feels the same then change sender