November 7, 2023 at 13:14 GMTModified date: November 7, 2023 at 13:14 GMT
November 7, 2023 at 13:14 GMT

$SHIB, $DOGE lead the game in open futures rankings

There has been an increasing inflow of money into top meme cryptocurrencies ever since $BTC started its October rally.

$SHIB, $DOGE lead the game in open futures rankings

There has been an increasing inflow of money into top meme cryptocurrencies ever since Bitcoin ($BTC) started its October rally.

Rising interest in coins like Shiba Inu ($SHIB) AND Dogecoin ($DOGE) seemed to be a sign of increased investor risk appetite in the crypto market.

As per Velo Data, the open interest, i.e. the dollar value locked in the number of active perpetual futures and standard futures contracts, has risen for both these memecoins.

Since 1 November, $SHIB has increased by 23% to $61.74m, which came out to be the highest percentage growth among all top cryptocurrencies. Open interest in $DOGE also experienced a similar sentiment with a 14.6% increase to $328m.

Meme cryptocurrencies aside, other coins like $MATIC, $ETH, $ETC, and $LTC also saw a rise but only by 6% – 7%. The same for Bitcoin, on the other hand, remained unchanged over this time period.

Technical analysts use open interest and other metrics to gauge the strength of a market trend. Increasing open interest indicates an influx of new traders entering the market.

It could be said that more money flowing into derivatives tied to non-serious coins like $DOGE and $SHIB suggested increased willingness among investors to take risks. As observed in the past, a continued outperformance of meme cryptocurrencies has signaled greed and marked trend changes in Bitcoin’s price.

While $SHIB and $DOGE have risen by 3% and 5% in price, respectively, $BTC was at a less than 1% weekly price rise. The top coin has been trading within a price range of $34,000 and $35,000 in the past few days.

Back in March, Shiba Inu etched a new milestone as the community managed to push its burn rate up by 7,900%. A total of 43,192,603 Shiba Inu tokens were locked into unspendable wallets, effectively reducing the circulating supply of tokens. The week prior to this event saw 148,357,592 $SHIB being burnt.

Token burns are usually associated with an increase in its price as the process involves transferring the assets to unspendable addresses, ultimately making them scarcer.

In the last week, $XRP was one of the top performers with over a 15% rise. However, the latest report showed that the open interest in the coin has only increased by a meagre 0.76% in the last seven days. On top of this, the data also noted that $XRP’s gains have been mainly spot-driven.

Other coins which did not grab much investor attention during this time were $DOT, $UNI, $TRX, $ATOM and $BNB.