Dogecoin (DOGE), once a shining star among meme cryptocurrencies, witnessed a notable setback. Its value has declined nearly 4% over the past 24 hours and is trading at 0.1909 at press time. Notably, the coin’s trading volume has increased by 2.29% within the last 24-hour period, hinting at mixed market activity for DOGE in the short term.
Data provided by the blockchain analytics platform Santiment suggests that a waning demand for the altcoin primarily fueled the recent price decline. Further data analysis revealed a sharp 61% reduction in the daily number of addresses transacting in DOGE. This decrease in active participation has also led to a significant drop, by 73%, in the total transactions involving the altcoin over the last day.
Santiment’s review of DOGE’s social engagement indicators showed a noticeable downtrend starting from April 7. These indicators, which measure levels of social interaction and engagement, including likes, comments, retweets, and upvotes, recorded a 33% and 78% fall in social dominance and volume, respectively.
In the derivatives market, sentiments towards Dogecoin further soured, with Coinglass reporting a significant retreat in trading volume over the last day. Additionally, the coin’s futures open interest, a measure of market activity, fell by 4%, totaling $1.64 billion.
From the onset of April, diminishing interest in DOGE’s futures market` became apparent, with a 26% decrease observed between April 1 and April 9. Such a reduction in open interest is often interpreted as a sign of declining market activity, suggesting that future market participants are opting to close their positions rather than open new ones.
This recent development signals a cooling phase in the once overheated meme coin market, with Dogecoin leading the retreat. The contraction in trading volumes and futures open interest points towards a growing caution or bearish sentiment among investors, indicating a shift in investor enthusiasm away from meme cryptocurrencies. As the market landscape continues to evolve, the dynamics of meme coins like Dogecoin serve as a pulse check on speculative interest and investor sentiment in the broader cryptocurrency ecosystem.
