Recent data from Glassnode reveals a significant drop in the Open Interest for Dogecoin, a trend that reflects broader movements within the memecoin market. For investors and enthusiasts keen on understanding the implications of these changes, it is essential to analyze not only Dogecoin but also how other memecoins like Shiba Inu and Pepe have responded.
Dogecoin Has Witnessed A Decline In Open Interest Recently
In a new post on X, analytical firm Glassnode has shared insights regarding the fluctuations in Open Interest among various memecoins in the cryptocurrency sector. The Open Interest denotes the total number of open derivative positions on an asset across all exchanges, serving as a crucial indicator of market sentiment.
According to the latest data, Dogecoin’s 7-day moving average (MA) Open Interest peaked at $3.5 billion in December. However, a pronounced decline has occurred since then, with the current Open Interest level plummeting to approximately $1.49 billion—an alarming reduction of about 58.4%. The accompanying chart underscores this downward trend:
Furthermore, Dogecoin is not alone in this struggle. The second chart, also referenced by Glassnode, illustrates a similar decline in Open Interest for other memecoins such as Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF). All have experienced this downturn more severely than Dogecoin, with declines exceeding 69%.
Moreover, Shiba Inu (SHIB) and Floki (FLOKI) have exhibited a similar trajectory, with Open Interest dropping by 74% and 69%, respectively. The trend is visually represented in the following chart:
Comparison with Major Cryptocurrencies
Despite the significant decline in Open Interest across memecoins, other segments of the cryptocurrency market appear to be faring better. The following chart compares the percentage change in Open Interest between popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) against the memecoins:
Bitcoin, Ethereum, and Solana have reported relatively minor drops of 11%, 23%, and 6%, respectively, which starkly contrasts with the 52% drop witnessed across the memecoin market.
DOGE Price and Future Outlook
Presently, Dogecoin’s price has been largely stable, trading around the $0.25 mark for the past few weeks. As the market navigates these fluctuations, investors should closely monitor both Open Interest trends and price movements to make informed decisions moving forward.
