Data shows the Dogecoin Open Interest has seen a large drop recently. Here’s how the trend has compared for Shiba Inu and other memecoins.
Dogecoin Has Witnessed A Decline In Open Interest Recently
In a new post on X, the analytics firm Glassnode has discussed about the latest trend in the Open Interest for the various memecoins in the cryptocurrency sector.
The “Open Interest” here refers to an indicator that keeps track of the total amount of positions related to a given asset currently open on all derivatives exchanges.
First, here is a chart that shows the trend in the 7-day moving average (MA) of the metric for Dogecoin, the original meme-based token:
As is visible in the above graph, the 7-day MA of the Dogecoin Open Interest had a value of $3.5 billion in December, but since then, speculative interest around the asset has plummeted as it has come down to just $1.49 billion today. This represents a decrease of around 58.4%.
DOGE isn’t the only memecoin that has gone through a futures flush in this period, however, as the second chart shared by the analytics firm shows.
From the graph, it’s apparent that Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF) have all seen a cooldown in Open Interest during the last couple of months. The decline has even been more pronounced than DOGE’s for all of these, as the metric has fallen by more than 69% for them.
Shiba Inu (SHIB) and Floki (FLOKI) have likewise followed suit, with the indicator declining by 74% and 69%, respectively.
While speculative activity on the futures market has taken the deep dive across the memecoins, it appears the trend has been different for other parts of the cryptocurrency sector.
Here is a chart that the analytics firm has shared in another X post, which shows how the percentage change in the Open Interest has compared between meme-based assets and three of the top coins (Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)):
As displayed in the above graph, Bitcoin, Ethereum, and Solana have registered a drop of 11%, 23%, and 6% on the metric, respectively. Clearly, this is significantly less than the 52% crash that the memecoin market combined has observed.
DOGE Price
Dogecoin has been locked in sideways movement during the last couple of weeks as its price is still trading around $0.25.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
