Benzinga - Meme coins Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) are surging in futures trading activity, propelled by the recent upswing in Bitcoin’s (CRYPTO: BTC) value.
What Happened: According to CoinDesk, the onset of November has seen a significant increase in open interest for SHIB and DOGE futures. SHIB’s open interest escalated by 23% to $61.74 million, leading the charge among major cryptocurrencies. Concurrently, DOGE’s open interest ascended by 14.6%, reaching $328 million.
Altcoins such as Polygon (CRYPTO: MATIC), Ethereum (CRYPTO: ETH), Ethereum Classic (CRYPTO: ETC), and Litecoin (CRYPTO: LTC) also registered an increase in open interest by 6% to 7%. In contrast, Bitcoin’s open interest did not show any marked change.
This upsurge in open interest is indicative of new capital entering the market, with a clear inclination towards meme coin derivatives reflecting a higher risk appetite among traders. Historically, such movements have hinted at forthcoming variations in Bitcoin’s pricing patterns.
In the previous week, DOGE and SHIB experienced price hikes of 6.5% and 3.6%, respectively. Meanwhile, Bitcoin has maintained a relative stability, circling around the $35,000 threshold.
See Also: ‘Every Dog Has Its Day’: Crypto Analyst Predicts Dogecoin To Skyrocket 140% By End Of 2023
On the other hand, despite XRP’s price soaring by 18.6%, its open interest only saw a marginal increase of 0.76%, suggesting that its gains were predominantly driven by spot market transactions. Conversely, digital assets like DOT, UNI, TRX, ATOM, and BNB have been subject to fund outflows.
Why It Matters: The fervor around SHIB and its futures is partly fueled by a remarkable 14,000% spike in its burn rate, with a staggering 173 million SHIB tokens incinerated in a single day.
For DOGE, a crypto analyst’s prediction that the coin could experience a 140% rally by the end of 2023 has stirred investor interest. This bullish sentiment is backed by DOGE’s recent 6% rally, trading at $0.071, and echoes a broader optimism within the meme coin sector.
Photo by Dennis Diatel on Shutterstock
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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