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 Dogecoin Open Interest has seen a large drop recently. This is in contrast to other memecoins, which have seen their Open Interest increase. The decline in Dogecoin Open Interest may be due to the lack of interest in the asset among traders.
Dogecoin is a cryptocurrency that was created in 2013 as a parody of Bitcoin. However, the asset has managed to outlive the original meme coin and has even attained a top-15 ranking on the basis of market capitalization.
The Open Interest is an indicator that keeps track of the total amount of positions related to a given asset currently open on all derivatives exchanges. A high Open Interest indicates that there is a lot of speculative interest around the asset, which can lead to price volatility.
The 7-day moving average (MA) of the Dogecoin Open Interest had a value of $3.5 billion in December. However, the asset’s price action has failed to generate any excitement among traders, leading to a sharp decline in the Open Interest.
The 7-day MA of the Dogecoin Open Interest has now dropped to just $1.49 billion today. This represents a decrease of around 58.4%. The last time the indicator was at this level was in early November.
The lack of interest in Dogecoin among traders is also evident in the asset’s price movement. Dogecoin has been trading sideways for the last couple of weeks and is still stuck around the $0.25 price level.
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