Meme coin investors worry more about Dogecoin and similar tokens when futures open interest numbers drop in both the meme coin and overall cryptocurrency sectors. Recent market ups and downs plus diminishing futures OI contracts motivate investors to rethink their participation in the sector.
Meme coin tracker Glassnode shows open interest in derivative trades for this sector has recently decreased strongly. Metrics for outstanding derivatives contracts reveal high investor pessimism because the total value of outstanding derivatives has decreased significantly.
Futures Open Interest across memecoins sector has dropped significantly since their peaks.$DOGE‘s Futures OI 7D moving average saw a 58.45% decline, falling from $3.58B on Dec 9, 2024, to $1.49B today: https://t.co/5yBcLzcXMA
How do other memecoins compare? Let’s dive in 👇 pic.twitter.com/oIKRmQdsBx
— glassnode (@glassnode) February 19, 2025
The seven-day trading average for Dogecoin futures open interest went down by 58.45%. It started at $3.58 billion on December 9, 2024 before dropping to $1.49 billion. The drops for PEPE, BONK, and WIF stand at 71.93%, 75.10% and 69.83%. The amount of open futures contracts traded for SHIB decreased by 74.41% from $323 million to $83 million while FLOKI moved 69.18% from $41.7 million to $12.9 million.
Meme Coin Futures Drop, Traders Exit Leveraged Positions Rapidly
The rapid decrease in futures OI reveals that traders are giving up their leveraged positions because they believe the meme coin boom will end. Short-term market conditions will face reduced traders’ liquidity and increased price swings.
Speculative excitement around meme coins is starting to fade so investors should expect price drops in these risky assets. Retail investors should watch these assets closely because they still need to face market uncertainty.
Meme coins face difficulties that affect the entire cryptocurrency market. The cryptocurrency market overall continues to decline because of economic stress, weaker trade activity and official oversight concerns. High-risk meme coins typically lose value when the market experiences declines.
Recent scams in the SOL-based LIBRA project have made investors more doubtful of their investments in meme coins.DOGE registered minor increases to $0.2545 yet dropped more than 1.5% during the week. During the past month DOGE prices moved between $0.4002 and $0.2117.
SHIB dropped 0.2% to $0.00001538 while its one-day selling activity went down by 19% to $208.42 million. During the last 30 days the meme coin decreased its value by 26% and had a 5% drop over the past week.
During this period PEPE market value decreased by 2% while its daily trade fell 38% down to $655.47 million. FLOKI experienced a sudden increase after declining when it rose 4% in the last 24 hours to $0.00009840. The new value helped SHIB rise 7% weekly but it still dropped 33% during the past thirty days.
Meme coin investors remain concerned about both market risk and volatility since the coins lose trading value while market conditions worsen. Markets participants need to watch out for this sector because short-term improvements only appear in some assets while the bigger picture still looks unclear.
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