Where are the mainstream tokens going? Has the bull market turned to bearish?

The total open interest of XRP, SOL, and DOGE fell by 51% last month.

The market's interest in these cryptocurrencies has obviously waned, or the profit-taking has basically withdrawn or is on the sidelines.

Open interest (OI) is an indicator that measures the total value of all unsettled cryptocurrency futures contracts on exchanges. It is very important for traders and analysts to help them assess market sentiment and predict future price trends.

Among the top nine cryptocurrencies by market capitalization, Dogecoin has the largest drop in open interest, falling 64% to $668.2 million since April 1.

Solana's open interest currently stands at $1.51 billion, down 47% since April 1. Meanwhile, XRP's OI is $497.67 million, down 44% in the same time period.

Market instability usually leads to a drop in OI because traders are uncertain about the direction of the market and are less willing to trade in volatile prices.

The current OI level is close to the historical low before and after the collapse of FTX exchange, showing the cautiousness of market sentiment.

After the Bitcoin halving on April 20, Bitcoin miners' income fell to a new low for the year, which is another major reason for the current market uncertainty.

The market is expected to adjust further. Under such sentiment, traders establish new positions, and the vicious cycle repeats.

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