Dogecoin Futures Open Interest Collapses ~75% as ETF Hype Fades
Dogecoin futures open interest has plunged roughly 70–75% from a mid-September peak near $6.0 billion to about $1.2–$1.8 billion by December–January, according to CoinGlass. Binance’s DOGE futures OI fell most sharply, from roughly $1.15 billion in mid-September to about $300–400 million. The rise in open interest from late June to mid-September coincided with ETF-related speculation while DOGE traded in the $0.25–$0.28 range. After ETF rollout failed to sustain momentum, leveraged traders exited en masse and OI collapsed. DOGE is trading near $0.14 at the time of reporting. Analysts warn the lower DOGE open interest and thinner order books reduce liquidity and amplify volatility: individual trades can move the market more easily, spreads on derivatives can widen, and slippage for large orders will increase. That environment raises the risk of liquidation cascades if a sharp move occurs. For traders, the immediate implications are clearer risk controls — smaller position sizes, wider stop distances, and careful use of leverage — and attention to Bitcoin and broader crypto market direction, which will likely determine any rebound in DOGE. Primary keywords: Dogecoin open interest, DOGE futures, ETF, leverage, liquidity.
Bearish
The sharp 70–75% collapse in Dogecoin open interest indicates a mass unwinding of leveraged positions and a significant reduction in market-making and speculative participation. Lower DOGE open interest and thinner order books reduce liquidity, which typically increases price impact of individual orders and raises the probability of volatile moves and liquidation cascades. In the short term, this is bearish for DOGE: with fewer leveraged buyers and shallower bids, downside moves can accelerate and recoveries are less reliable without broader market support. Over the medium term, DOGE could rebound if Bitcoin and the wider crypto market strengthen and leveraged activity returns; historically similar OI lows have preceded modest rallies. However, until open interest and order-book depth recover, the balance of risk favors downward pressure and higher volatility, so traders should expect larger intraday swings, wider spreads on derivatives, and higher slippage for sizable orders.