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Dogecoin’s open interest surged to a record high of $4.6 billion on November 23, indicating significant interest in the cryptocurrency even as its value remained below its peak. The cryptocurrency’s value spiked mainly due to futures trading. However, when its value dropped sharply, many had to sell their positions, leading to a further price drop. The average cost to hold a future position in Dogecoin is about 2% per month. Despite a 161% increase through November 25, it has lagged behind other cryptocurrencies. Its future may be influenced by factors such as Elon Musk’s tweets or its unique image.

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Hey there! Just wanted to share that Dogecoin’s future betting activity, also known as open interest, shot up to an all-time high of $4.6 billion on Nov. 23, beating the previous record by a whopping 100%! Even though the value of Dogecoin was 35% below its all-time high of 74 cents in May 2021, the increased betting action shows that a lot of folks are still pretty interested in it.

You may have noticed that Dogecoin’s value soared by 224% between Nov 3 and Nov 23, mainly because of futures trading, or betting on its future performance. This is kind of what happened in April 2024, so some folks are wondering if we’re seeing a repeat now.

Between March 20 and March 28, we saw Dogecoin’s value increase by more than 80%, all the way up to 23 cents. This happened at the same time the open interest reached $2.3 billion. But, when Dogecoin’s value dropped by more than 15% within five days, a lot of folks betting on it had to sell off their positions, causing the price to go down by 40% to 14 cents.

Now, for Dogecoin, the average cost to hold a future position is about 2% per month, which is pretty standard. The brief spike to 7.5% on Nov. 23 isn’t the usual situation, as the rate resets every eight hours. Unlike other times that Dogecoin’s price went up, this recent increase was due primarily to immediate buying and selling activity.

Although Dogecoin’s 161% increase through Nov. 25 looks impressive, it’s actually fallen behind other cryptocurrencies like Stellar, Cardano and XRP.

It’s hard to say right now whether the folks betting higher on Dogecoin are doing it because of the same reasons as those buying up other “dinosaur coins”, or old school altcoins from before 2018. If it’s due to Elon Musk’s frequent tweets about Dogecoin or it’s being affected by other unique factors, Dogecoin could end up performing differently from other altcoins.

Given Dogecoin’s fun image baked into its Shiba Inu mascot, unlike the more serious “dinosaur coins”, Dogecoin could end up growing independently from other cryptocurrencies.

Nevertheless, as long as the amount of money people are betting on Dogecoin stays balanced, we shouldn’t see too many cases of people having to sell off their positions in a panic. Just remember, this is just some interesting info on what’s happening right now, not financial advice!