Recently, the market performance of DOGE has attracted widespread attention. On November 23, the open interest of DOGE futures surged to a historic high of 4.6 billion dollars, doubling the previous record. This surge in leverage demand coincided with a 224% price increase from early November to now. However, this phenomenon also brings to mind the risks of excessive leverage seen in history, such as the severe volatility similar to that in April 2024.
It is noteworthy that the current leverage cost of DOGE is relatively controllable, with financing rates within a reasonable range, and the recent price increase has been mainly driven by the spot market. Moreover, despite the significant rise, DOGE's performance is slightly inferior compared to similar assets like XLM, ADA, and XRP.
Interestingly, the price fluctuations of DOGE are often closely related to the influence of celebrities such as Elon Musk. As a community-driven project, DOGE's value relies more on the cultural dissemination and unique charm of its Shiba Inu mascot.
Despite the bullish market sentiment, it is essential to remain vigilant about the potential liquidation risks that leverage may bring. Maintaining rationality and keeping an eye on market dynamics is crucial. The future of DOGE may still be a journey full of surprises.
