Dogecoin’s total open interest has hit its lowest point since the start of the year, dropping to $2.51 billion. This decline is attributed to the continuous decrease in DOGE’s value over the past month.
The popular meme coin, Dogecoin (DOGE), has seen a decrease in activity in its derivatives market, resulting in a total open interest of $2.51 billion as of now. This marks the lowest level of open interest since the beginning of the year, indicating a significant decrease in the number of outstanding options or futures contracts that have not yet been settled or closed.
Open interest is a measure of the total number of outstanding options or futures contracts that have yet to be settled or closed. An increase in open interest suggests the creation of new contracts, indicating growing interest or activity in the market. Conversely, a decrease in open interest implies that existing contracts are being closed without new ones being opened, which can indicate a decline in market activity or interest.
Currently, DOGE’s open interest stands at $2.51 billion, starting its downtrend on June 8 and subsequently declining by an astonishing 80%. To provide context, just a month ago, the open interest for this meme coin exceeded $10 billion.
The significant drop in Dogecoin’s derivatives market activity can be attributed to the steady decrease in its value during the period under review. Currently trading at $0.10, DOGE’s price has fallen by a notable 30% over the past month.
The continuous decline in DOGE’s value even led many futures traders to request short positions on July 6. This observation is based on the readings from the coin’s funding rate, which was negative (-0.026%) on that specific day.
Despite the decrease in DOGE’s value, its Chaikin Money Flow (CMF) indicator has managed to maintain an upward trend. As of now, DOGE’s CMF is positioned above the zero line at 0.03 and is currently trending upwards.
