Dogecoin’s total open interest has plummeted to $2.51 billion, its lowest level since the beginning of the year.
The decline in open interest is attributed to the steady dip in DOGE’s value over the past month.
Despite the decline in value, DOGE’s Chaikin Money Flow (CMF) has maintained an uptrend.
Dogecoin (DOGE), the popular meme coin, has witnessed a decline in its derivatives market activity, with the total open interest cratering to $2.51 billion as of writing.
This marks the lowest level of open interest since the beginning of the year, indicating a substantial decrease in the number of outstanding options or futures contracts that have not been settled or closed.
Dogecoin Derivatives Traders Bid Farewell
An asset’s open interest serves as a measure of the total number of outstanding options or futures contracts that have yet to be settled or closed. When open interest increases, it suggests that new contracts are being created, signaling growing interest or activity in the market.
On the other hand, a decrease in open interest implies that existing contracts are being closed without new ones being opened, which can be indicative of a decline in market activity or interest.
Currently, DOGE’s open interest stands at $2.51 billion, having initiated its downtrend on June 8 and subsequently declining by an astonishing 80%. To put this into perspective, the meme coin’s open interest surpassed $10 billion just a month ago.
Source: Coinglass
The sharp decline in Dogecoin’s derivatives market activity can be attributed to the steady dip in its value during the period under review. The ninth-ranked cryptocurrency asset by market capitalization is currently trading at $0.10. Over the past month, DOGE’s price has fallen by a significant 30%.
The unabated decline in DOGE’s value even prompted many of its futures traders to demand 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 particular day.
Despite the decline in DOGE’s value, its Chaikin Money Flow (CMF) indicator has managed to maintain an uptrend. As of writing, DOGE’s CMF is positioned above the zero line at 0.03 and is currently trending upward.