Dogecoin (DOGE) and memecoins like Bonk (BONK) are drawing significant attention from investors and traders during the recent rise in the cryptocurrency market. This trend is particularly evident in DOGE, which recently saw its open interest reach a record level of 1 billion dollars.
Open Interest Surpasses 1 Billion Dollars
Despite a slight pullback in the last 24 hours, Bitcoin (BTC) rose from 59 thousand dollars to over 63 thousand dollars, causing Dogecoin‘s DOGE to see a notable value increase of up to 40%. DOGE stood out by performing better than many other major altcoins.
According to Coinglass data, the size of the unsettled positions for DOGE perpetual futures, known as open interest, has increased by over 54% since February 28, reaching an all-time high of 1 billion dollars. This increase in open interest, along with data showing that 70% of traders have taken long positions expecting DOGE to rise, indicates a new influx of capital into the Dogecoin market.
However, CryptoQuant, which follows DOGE’s price movements, warns that the Relative Strength Index (RSI), a key indicator for price movement, has reached the “overbought” level and that there could be a price drop for the altcoin in the short term.
Also Gaining Strength from Fundamental Developments
On the other hand, looking at fundamental developments for Dogecoin, it is evident that developers have recently released the core version 1.14.7 of the network, focusing on enhancing security and encouraging node operators to upgrade. Additionally, the inclusion of the Ordinals protocol into the Dogecoin Blockchain has led to the emergence of innovative applications, including popular games running entirely on the Dogecoin network, thereby increasing the network’s usage.
While memecoins continue to attract interest from individual investors and traders amid the ongoing bull market, it is important to remember that they also bring many risks. Data from Coinglass shows that traders who opened long and short positions in DOGE in the last 24 hours faced losses exceeding 40 million dollars. This situation is a result of the high volatility and speculative nature inherent in memecoins.
