- Dogecoin is experiencing conflicting growth trends amid speculation of a potential ETF approval.
- Despite a price increase of 3.87%, trading volume has dropped by over 50%.
- Market optimism is fueled by the potential for a Dogecoin ETF, following the approval of Ethereum ETFs.
Dogecoin’s conflicting growth trends spark market interest amid ETF speculation. Explore the latest developments and market reactions.
Dogecoin Showing Mixed Reaction
While the biggest spotlight in the digital currency ecosystem rested on Ethereum per the approved spot ETH ETF, Dogecoin has had a fair share of the spotlight. The passing away of Kabosu, the dog that inspired the Dogecoin creation and the broader memecoin, sparked many tributes to the coin.
Even Tesla CEO and X owner Elon Musk shared a tribute post that helped stir a mild bullish run in the price of the coin. At the time of writing, DOGE is still sustaining some of its accrued gains, jumping 3.87% to $0.1706. While this sends optimism in a market that is facing mild consolidation, the 24-hour trading volume speaks a different mystery.
Amid the price surge, the trading volume is down by 54.31% to $1,428,386,003. This figure is hard to explain as price growth and volume are expected to show some forms of correlation. At the current level, there’s a limited interest in the retail DOGE market and if sustained, might drag the price down this long US Memorial Day season.
The Dogecoin Open Interest (OI) metrics, however, paint another unique bullish story. Per data from Coinalyze, Dogecoin open interest in the past 24 hours has soared by 6.86% to $895.7 million. While the retail sector might be filled with bearish interests, DOGE derivatives traders are hyped with the market as shown by the data.
Will SEC Approve DOGE ETF?
When spot Bitcoin ETF products launched in January, there was a general bearish expectation that no other cryptocurrency would bag related approval. However, the speculations changed earlier this week when the SEC approved 8 spot Ethereum ETF products.
With this new product, many market proponents are now hopeful that memecoins like Dogecoin also have a fair chance to bag related approval in the future. Many of these memecoins like Dogecoin started out as a joke; however, many of these tokens are making very crucial pivots to offer utility.
From Shiba Inu’s push to launch Shibarium to Floki’s launch of TokenFi, the terrain is changing. With this, expectations remain that mainstream adoption through ETFs may be secured later.
Conclusion
Dogecoin’s market performance is currently a mix of optimism and caution. While the price has seen a notable increase, the drop in trading volume suggests a cautious retail market. However, the rise in open interest indicates strong interest from derivatives traders. The potential for a Dogecoin ETF, inspired by recent Ethereum ETF approvals, adds another layer of intrigue. As the market watches closely, the future of Dogecoin remains a topic of significant interest and speculation.
