Investor enthusiasm for Dogecoin is sharply declining. Over 67% of the open interest has decreased in three months

Open interest measures the active contracts on futures and option exchanges. Usually, a declining figure indicates traders shutting or avoiding new positions.

Investor enthusiasm for Dogecoin (DOGE) is sharply declining, with open interest on the meme coin decreasing by over 67% in three months, suggests data from blockchain analytics firm Glassnode.

At the beginning of December 2024, open interest in Dogecoin stood at $4.07 billion. However, by February 2025, it had dropped to $1.33 billion. This significant decline, which amounts to a 67% decrease in just three months, suggests mounting caution among market participants.

Many traders are retreating due to uncertainties in the broader crypto market, leading to a closure of futures and options positions. Open interest, which measures the value of active derivatives contracts, usually diminishes when traders wind down existing positions or prefer not to open new ones.

The 67% drop in OI for Dogecoin and a smaller decrease in Bitcoin (BTC) open interest suggest that traders are becoming more risk-averse and focused on stable investments.

This aligns with the pattern of decreasing futures trade volume in Bitcoin and Ethereum (ETH), while smaller altcoins like Dogecoin are seeing more dramatic changes in open interest.

Furthermore, network activity of Dogecoin has also seen a steeper decline compared to Bitcoin and Ethereum. Active addresses for Dogecoin in November 2024 were around 1.3 million, but by February 2025, the count had dropped to 130,000, which translates to a 95% decrease in just a few months.

This decline in activity implies that a decreasing number of users are interacting with the Dogecoin system, which could be a concern for the long-term health of the network.

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.

However, despite the pessimism surrounding Dogecoin, Grayscale set up a Dogecoin Trust in January, which is still accepting new investments. This move by a major institutional investor shows that there is still some interest in the meme coin.

It remains to be seen whether institutional backing can compensate for the waning retail interest in Dogecoin.

Grayscale’s involvement signals that there are hopes for the long-term survival of Dogecoin, but the real test will be whether regular buyers return to support the coin in the coming months.

If the market mood recovers and broader crypto use increases, Dogecoin may experience a resurgence. Until then, the road ahead for the meme coin appears bleak. However, in the rapidly changing realm of crypto, anything is possible.

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