Dogecoin's Price Plummets 16% Amidst Cooling Interest

Dogecoin, the original meme coin, has faced significant challenges this week, with its price dropping nearly 16% and open interest diminishing. According to CoinGlass, open interest in Dogecoin futures now stands at approximately $3.8 billion, a stark contrast to its January peak of $5.5 billion. This decline in open interest reflects a potential cooling interest in the asset.

Dogecoin's price struggle continues as it drops 16% this week, affecting futures trading interest amid a broader crypto market downturn. In recent days, Dogecoin's price has slipped to just over $0.32, experiencing a 24-hour decline of nearly 4%. This downturn positions the coin as one of the poorest performers among the top 20 cryptocurrencies, trailing only Sui amidst a hostile market environment.

The cryptocurrency market has faced pressures largely attributed to the recent sell-off in tech stocks, affected by rising concerns over the capabilities of the new Chinese AI model, DeepSeek. Such external influences have tied the movements of digital currencies closely with traditional tech stocks, notably those within the Nasdaq index. As investors transition their assets amidst uncertainty, meme coins like Dogecoin are exposed to increased volatility.

The decline in Dogecoin's price has correspondingly led to a decrease in futures trading activity. As per the latest figures from CoinGlass, the open interest of futures contracts on Dogecoin has diminished to approximately $3.8 billion, which is significantly lower than its record high of $5.5 billion earlier this year. Open interest represents the total number of outstanding futures contracts that have not yet been settled, reflecting trader sentiment regarding the asset's future price movements.

Other meme tokens are similarly affected, with noteworthy declines observed in President Trump's TRUMP token—plummeting over 37% within the same timeframe—now trading around $27. Additionally, Bonk, another Solana-based meme token, has also faced a sharp decline exceeding 30%. This scenario starkly illustrates the rapid swings inherent in the meme coin sector, where astronomical gains can quickly turn into substantial losses.

In light of recent developments, Dogecoin investors may need to reassess their strategies. The current market climate reflects heightened uncertainty, and the performance of meme coins suggests a broader trend of instability. Moving forward, it's