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Dogecoin (DOGE) has seen a sharp uptick in market activity, with open interest soaring 5.24% to $1.3 billion in just 24 hours. The rise, fueled entirely by perpetual contracts, indicates a renewed wave of speculative trading — and could signal major price volatility ahead for the meme-inspired crypto asset.
Perpetual Contracts Drive Dogecoin’s Surge
According to Coinalyze data, the entire $1.3 billion in open interest is tied to perpetual contracts, a form of futures trading without expiration. These contracts allow traders to maintain positions indefinitely, making them especially attractive for short-term speculation. The spike in activity suggests traders are positioning for a significant price move, although whether the sentiment is bullish or bearish remains unclear.
Open interest (OI) measures the total value of active derivatives contracts. A rise in OI often signals more money flowing into a given market — in this case, Dogecoin — and can be a precursor to increased price action.
Binance and Bybit Control the Market
Binance and Bybit dominate DOGE’s perpetual market, with Binance handling $581 million in open interest and Bybit close behind at $410 million. OKX follows with $244 million, while other platforms like Kraken, Huobi, and BitMEX hold smaller market shares.
In terms of recent activity, Binance recorded the highest DOGE trading volume in the past four hours with $18.57 million, followed by OKX at $10.97 million. Meanwhile, net inflow data shows OKX and Coinbase leading in new money entering DOGE positions, with $1.33 million and $1.25 million, respectively.
Also Read: Dogecoin (DOGE) to $1 by September? Analyst Forecasts Major Breakout – Here’s Why
Meme Coin Momentum Builds
Dogecoin maintains its crown as the top meme coin by market activity, outpacing Shiba Inu in volume and open interest. While the surge in leveraged trading highlights growing excitement around DOGE, it also raises the risk of heightened volatility.
As traders continue to pile into perpetual contracts, the market watches closely to see whether this speculative wave will lead to a breakout — or a correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
