Open interest in coins
In an article on X, Glassnode revealed that the seven -day mobile average Dogecoin slipped 58.45% of $ 3.58 billion on December 9 to $ 1.49 billion.
Other cryptocurrencies behaved similarly or have experienced a sharper decline. Shiba Inu“S ani fell by 74.41% while being an open interest in Floki slipped 69.18%.
Pepe’s open interest recorded a drop of 71.93%. Bonk’s OI dropped 75.10%. Even Dogwifhat Coin also saw its open interest fall by 69.83% percent.
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A “meme-pole” in preparation?
Analyst Credibull Crypto described this phenomenon as “memes pocalypse” on X. This could cause reset or liquidation of the sector. Fall in an open interest in coincides coincides with a drop in their evaluation, according to Benzinga . Cryptocurrencies have lost between 45% and 83% of their value since December, Dogwifhat being the least affected.
Why the value of cryptocurrencies can decrease
A new study has identified key factors that lead to the rise and fall of popular cryptocurrencies such as Bitcoin, Dogue and Ethereum, Benzinga reported.
According to the study, taking profits, regulatory changes, lower interest and speculative media threw are the main reasons why the value of these digital assets falls after having reached heights of all time. The exchange lists have been identified as another key factor to increase visibility.
Social media have often contributed to the media threshing of cryptocurrencies. Dogecoin, for example, climbed new peaks after Elon Musk began to support him.
However, without real utility and long-term adoption, the value of cryptocurrencies as Dogecoin is subject to sudden falls. The sector is also subject to speculative pump and dump cycles, which can lead to a rapid devaluation of the assets while the interest of investors decreases.
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What is the next step for coins
It is too early to say if the drop in term contracts on the OI is only market correction by investors or a sign of people moving away from coins. The coming months will be crucial for the sector in terms of recovery. The entry of new players on the market can also galvanize other coins. As for Dogecoin, Elon Musk’s actions in the coming weeks will influence its value a lot.
Faq
What are the pieces even?
Parts are cryptocurrencies that owe their origin to memes or internet trends.
What is Dogecoin?
Doge Coin is a cryptocurrency that has been created on the basis of the “Doge” of a Shiba Inu. He is supported by Elon Musk.
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