- Open interest in Shiba Inu (SHIB) futures contracts increased by 23% since November 1st.
- Open interest for Bitcoin remained stagnant, and Ethereum and other major altcoins saw only slight increases in open interest.
- Rising open interest in SHIB and DOGE suggests new capital is flowing into the derivatives market
Meme-inspired cryptocurrencies Shiba Inu (SHIB) and Dogecoin (DOGE) have seen a resurgence of interest and capital inflow compared to the more subdued action in Bitcoin and other large-cap assets.
Data from analytics firm Velo shows open interest in SHIB futures contracts has jumped 23% since November 1st. DOGE saw a 14.6% increase over the same period. Meanwhile, open interest remains flat for Bitcoin and has only edged up moderately for Ethereum and other blue-chip altcoins.
Open interest refers to the total number of outstanding futures contracts held by market participants. Rising open interest signals new money pouring into an asset’s derivatives market.
Traders are flocking back to Shiba Inu and Dogecoin
SHIB and DOGE gaining an open interest boost indicates traders are flocking back to these speculative meme coins versus the relatively stagnant interest in majors like BTC. It matches the trend of DOGE and SHIB outperforming Bitcoin’s flat price action over the past week.
Historically, retail hype around meme cryptocurrencies climaxes around market cycle peaks when greed kicks in. The renewed meme coin momentum may signal concerns about an exhausted Bitcoin upside after October’s rally.
However, payment-focused asset XRP has seen more muted growth in open interest at under 1%, despite an 18% price explosion over the past week. This shows spot trading is currently driving XRP’s upside.
The dichotomy between XRP and the meme coins highlights a divergence in market sentiment. Interest in XRP appears fundamentally driven by developments around its utility and legal status.
Meanwhile, SHIB and DOGE are seeing speculation accelerate based on viral social media and online community momentum rather than technology milestones.