Dogecoin Open Interest Down 67% in Further Sign of Waning Interest Amid Market Uncertainty

Open Interest for Dogecoin futures has tanked over 67% in the past three months.  This is according to Glassnode data shared by prominent crypto analyst Ali Martinez on Thursday, February 27. Specifically, open interest in the popular memecoin has dropped from December 8 highs of $4.07 billion to just $1.33 billion.

Open interest refers to the total number of outstanding contracts in derivatives markets. It can often be used to gauge market sentiment, with low open interest usually signaling reduced optimism about an asset. The crash in Dogecoin open interest is the most recent indicator of waning interest in the memecoin in recent days. On Tuesday, February 25, Martinez disclosed that Dogecoin network activity had dropped 95%. Specifically, the number of active addresses on the network has fallen from highs of nearly 1.3 million in November 2024 to about 130,000. The dried-up demand comes as recent uncertainty sparked by inflation and trade war concerns have sent investors risk-off, leading to a flight of capital from speculative assets like memecoins. Amid these uncertain conditions, Dogecoin has plunged over 59% from December 2024 highs of $0.48442 to lows of $0.19564. Nonetheless, analysts remain optimistic about the chances of a near DOGE rally to stratospheric heights. In the latest instance highlighting this, highly followed crypto analyst “CryptoELITES” has recently suggested that DOGE is set to rally to the $5 price point, citing a bullish cup and handle pattern. However, the memecoin is exchanging hands for $0.20 at the time of writing.