Meme Coin Futures Open Interest Drops Significantly as Prices Fall, Sparking Debate about the Sector's Future

Open interest in meme coin futures has significantly decreased as prices have dropped, sparking a debate about the sector's future.

Interest in meme coin futures has dropped significantly as prices have fallen sharply, sparking a debate about the future of the sector.

What Happened: According to Glassnode data, Dogecoin (CRYPTO: DOGE) futures open interest has fallen by 58.45%, decreasing from $3.58 billion on Dec. 9, 2024, to $1.49 billion recently.

A post on X by Glassnode on Monday highlighted the decline.

Other meme coins experienced even steeper drops. Pepe (CRYPTO: PEPE) futures open interest fell by 71.93% ($1.25 billion to $351 million), Bonk (CRYPTO: BONK) futures OI decreased by 71.93% ($715 million to $178 million), and Dogwifhat (CRYPTO: WIF) futures OI fell by 69.83% ($653 million to $197 million).

Shiba Inu (CRYPTO: SHIB) and Floki (CRYPTO: FLOKI) futures OI also saw major contractions, decreasing by 74.41% and 69.18%, respectively, although their total OI is smaller compared to the others.

This widespread contraction in futures open interest suggests a major flush of leverage from the market but could also indicate shifting sentiment within the meme coin sector.

See More: Solana Meme Coin Ecosystem Under Fire: Galaxy Research Cites LIBRA Rug Pull As Major Blow

Why It Matters: The decline in open interest coincides with falling prices, as meme coins have lost between 45% to 83% since December.

Dogwifhat has suffered the steepest decline, while Dogecoin has held up the best.

CrediBULL Crypto called this a “meme-pocalypse” in a post on X on Wednesday, suggesting that while meme coins took a hit, it could be a reset rather than a total collapse.

Coingecko data confirms that the entire meme coin sector has undergone a significant valuation drawdown over the past three months.

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