Dogecoin Demand Slumps—Nearly 70% Drop In Open Interest Raises Concerns

dogecoin-demand-slumps—nearly-70%-drop-in-open-interest-raises-concerns
Dogecoin

Investor enthusiasm for Dogecoin is sharply declining. Over 67% of the open interest on the meme coin has decreased in three months. December 2024 saw it at $4.07 billion. By February 2025 it had dropped to $1.33 billion. This significant decline suggests mounting market caution. Many traders are retreating because of uncertainties in the broader crypto market.

Notable Drop In Dogecoin Open Interest

Open interest measures the active contracts on futures and option exchanges. Usually, a declining figure indicates traders shutting or avoiding new positions. The 67% drop in OI in Dogecoin points to weak investor trust.

Many are now turning their attention to more stable investments in view of market turbulence. The decline in sentiment also fits a larger pattern in the crypto market, where volume of futures trade has taken a hit lately. In contrast, Bitcoin and Ethereum have maintained higher open interest levels, smaller altcoins like Dogecoin are seeing dramatic declines.

#Dogecoin $DOGE open interest has declined by 67% over the past three months, dropping from an all-time high of $4.07 billion to just $1.33 billion today! pic.twitter.com/yRXjqqljNC

— Ali (@ali_charts) February 27, 2025

Network Activity Falters

Network activity of Dogecoin is likewise declining. November 2024 had active addresses close to 1.3 million. By February 2025 the count had dropped to 130,000, which translates to a whopping 95% drop in just a few months. Less transactions imply that a declining number of users are interacting with the system.

On-chain data suggests that Dogecoin transactions have become less frequent, indicating reduced participation from both retail and institutional investors. The drop in activity also means fewer new investors are joining the network, which could limit future growth potential.

Meme Coin Hiccup Continues

Dogecoin isn’t the only meme coin struggling. Other meme-based cryptocurrencies saw major price jumps in 2024 but have encountered headaches in early 2025.

Many investors who rode last year’s rally are now cashing out. The hype around meme coins appears to be fading, at least for now. Although some traders still find some ray of hope in meme coins, generally the sentiment has become pessimistic.

DOGE is currently trading at $0.18. Chart: TradingView

Analysts believe that joke coins like Dogecoin could continue to lose value if they don’t get a lot of new users or strong community participation. Also, as more projects come out on the market, the battle for investors’ attention gets tougher.

… But Institutional Interest Still Alive

Meanwhile, Dogecoin still packs some appeal to a number of institutions, even though OI and network activity have gone down. For example, Grayscale Investments set up a Dogecoin Trust in January of this year. This move shows that bigger buyers still think the coin has a lot of potential.

But it’s not clear if institutional backing can make up for falling retail interest. Grayscale’s involvement shows that there is still hope for Dogecoin’s long-term survival, but the real test will be whether regular buyers come back to support the coin.

If the market mood recovers and broader crypto use increases, Dogecoin may experience a resurgence. Until then, the road ahead for the meme just doesn’t look bright. But, anything can happen in the crypto space.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

Christian Encila

They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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.

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