Dogecoin Rides Bitcoin Wave: Hits One-Month High In Open Interest As Price Hits 10 Cents

The recent surge in Bitcoin has sparked increased interest in investing in meme cryptocurrencies, such as Dogecoin DOGE/USD. After a month-long rally of the Shiba Inu-themed cryptocurrency, Dogecoin also attained a one-month peak in notional open interest (OI).

Dogecoin belongs to a category of meme cryptocurrencies (high-beta assets), which typically fluctuate in tandem with Bitcoin's price. These types of assets are often seen as amplified bets on the more significant cryptocurrency market movements.

What Happened: CoinGlass data as reported by CoinDesk highlighted notional open interest (OI) tied to DOGE expanding by 58% to $625 million in a week, the highest since Nov. 2, 2022. Notional OI is the dollar value locked in the number of active futures and perpetual futures contracts.

Data from Velo shows that numerous exchanges have seen annualized funding rates of 50% or higher, indicating a significant premium in perpetual futures compared to spot prices.

A positive rate indicates investor preference for long, or bullish, bets, thereby marking optimism that prices are estimated to rise.

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Price Action: The leading meme cryptocurrency created 10 years ago DOGE is up over 10% in the past 24-hour, taking the past month's gains to over 35%. Meanwhile, the past 24-hour trading volume expanded by 206%. For the first time since April 2022, DOGE's price crossed above the 10-cent mark.

Elon Musk's "Progress" Remark - A Catalyst for DOGE's Market Surge? When X News Daily reported on Tuesday that X has acquired a money transmitter license across a total of ten U.S. states, Musk responded, tweeting, “Progress.” The tweet subtly suggested the possibility of incorporating payment options, potentially including Bitcoin and other cryptocurrencies, into his social media platform.

In August 2023, reports emerged suggesting Musk's intention to evolve X into a contemporary version of PayPal.

DOGE has a history of witnessing price movements on Musk’s comments and any public posts. His company Tesla already accepts DOGE payments for merchandise purchases in the Tesla Store.

Read Next: 'Doge Train Left The Station': Analyst Predicts Dogecoin To Skyrocket Over 700% By July 2024

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