Dogecoin's Price Plummets Amidst Market Turmoil and Diminishing Open Interest

Dogecoin Faces Significant Decline Amid Market Challenges as Open Interest Diminishes

Dogecoin, the original meme coin, has been struggling in recent weeks, with its price dropping by nearly 16% over the past seven days. The decline comes as the crypto market faces broader challenges, with investors selling tech stocks en masse due to concerns over the rise of Chinese AI models. Despite Bitcoin's recent recovery, the broader crypto market remains volatile, with meme coins like Dogecoin feeling the brunt of the sell-off.

Data from CoinGlass shows that open interest on Dogecoin has fallen by $1.7 billion, with the total value of futures contracts that have not yet been settled by traders now standing at nearly $3.8 billion. This decline in open interest suggests that investors are becoming less interested in betting on the future price of Dogecoin.

The price of Dogecoin has also fallen, with the coin now trading at just over $0.32 per coin, after a 24-hour dip of nearly 4%. Over the past week, Dogecoin has lost nearly 16% of its value, making it the second-biggest loser among the top 20 coins and tokens, behind only Sui.

While Dogecoin's price has been declining, other meme coins have also been struggling. President Donald Trump's TRUMP token, which runs on the Solana blockchain, has dipped by over 37% and is now priced at $27. Meanwhile, Bonk, another leading Solana meme token, has dropped by over 30% over the same period.

Despite the recent decline in Dogecoin's price, there is still hope for the meme coin's future. Bitwise, a leading crypto asset management firm, has filed for a Dogecoin ETF with the SEC. If approved, this would be the first physically backed structure for the meme coin under the '33 Act, providing secure, physically backed exposure to DOGE. This move could help legitimize Dogecoin as a viable institutional-grade asset and potentially boost its price in the long run.

However, in the short term, Dogecoin faces significant challenges, with open interest diminishing and the broader crypto market remaining volatile. Investors will be watching closely to see if Dogecoin can recover and reclaim its status as