Meme-inspired cryptocurrencies like Shiba Inu (SHIB/USD) and Dogecoin (DOGE/USD) have experienced a notable surge in futures trading activity, driven by the recent rise in the value of Bitcoin (BTC/USD).
Here’s what happened: The beginning of November has witnessed a substantial increase in open interest for SHIB and DOGE futures. Shiba inu’s open interest has surged by 23% to $61.74 million, leading the way among major cryptocurrencies. Simultaneously, DOGE’s open interest has risen by 14.6%, reaching $328 million.
Other alternative cryptocurrencies, such as Polygon (MATIC/USD), Ethereum (ETH/USD), Ethereum Classic (ETC/USD), and Litecoin (LTC/USD), have also seen a 6% to 7% increase in open interest. In contrast, Bitcoin’s open interest hasn’t shown any significant changes. This upswing in open interest signifies the influx of new capital into the market, with a clear preference for meme coin derivatives, reflecting a heightened risk appetite among traders. Historically, such movements have foreshadowed potential shifts in Bitcoin’s price patterns.
Shiba Inu’s And Doge’s Future
In the preceding week, DOGE and SHIB saw price increases of 6.5% and 3.6%, respectively. In contrast, Bitcoin has maintained a relatively stable price, hovering around the $35,000 mark. Conversely, despite XRP’s price surging by 18.6%, its open interest only witnessed a marginal uptick of 0.76%, indicating that its gains were primarily driven by transactions in the spot market. On the other hand, digital assets like DOT, UNI, TRX, ATOM, and BNB have experienced capital outflows.
Why this is significant: The enthusiasm surrounding Shiba Inu and its futures is partially driven by an astonishing 14,000% increase in its burn rate, where an incredible 173 million SHIB tokens were destroyed in a single day.
As for DOGE, investor interest has been piqued by a crypto analyst’s prediction that the coin could potentially rally by 140% by the end of 2023. This optimistic sentiment is supported by DOGE’s recent 6% price increase, trading at $0.071, and mirrors a broader positive outlook within the meme coin sector.