Why Dogecoin price increased today?
Dogecoin (DOGE) price has increased by 15% in the last 24 hours to trade at $0.1543.
This performance in the DOGE price is supported by fundamental and on-chain metrics, including futures open demand and whale activity.
Let's examine the factors driving the price of DOGE today.
Dogecoin price pumps after Coinbase news
The price of DOGE started rallying after news that Coinbase, a US-based cryptocurrency exchange, plans to introduce futures trading for DOGE alongside Litecoin (LTC) and Bitcoin Cash (BCH).
In the year In a March 7 letter to the Commodity Futures Trading Commission (CFTC), Coinbase Derivatives proposed a monthly cash-settled futures contract for Dogecoin.
In a letter sent to CFTC Secretary Christopher Kirkpatrick, Coinbase explains the amount of the contract, the strictness of the contract and the settlement methods.
An interesting point is that the letter stated that the exchange may list the DOGE futures contract under CFTC Rule 40.2(a), which allows it to continue listing without any official approval from the CFTC by “self-certifying”.
The letter allows Coinbase Derivatives to list DOGE futures as long as it complies with the CFTC's regulatory guidelines as a “self-certification” method.
Coinbase confirmed this in a March 21 post on X, asking users to wait for these contracts to be available for trading on partner platforms.
This raises interesting regulatory questions, however, according to Bloomberg analyst James Seifert, as the US Securities and Exchange Commission recognizes all cryptocurrencies derived from Bitcoin as commodities.
Dogecoin open interest has exceeded 1 billion dollars
DOGE's performance over the past 24 hours also coincides with an increase in forward open interest (OI). Data from Coinglass shows that OI in DOGE has risen by 27.5% in the last 24 hours. This increase saw OI cross the $1 billion mark to rest at $1.17 billion at press time.
Open interest refers to the number of open positions in options contracts. It provides insights into the asset's liquidity, demand and price movements. The increase in DOGE's OI reflects interest pro traders in memecoin, which is positive for the price.
Related: BlackRock Accepts Memecoins, NFTs After Depositing $100M USDC Onchain
Wel's movement supports the DOGE's march
After the recent market-wide correction that saw billions of dollars flowing in, DOGE has dropped as low as $0.125 and is currently down 10% on the weekly timeframe. However, the increase in whale transaction volume is a great sign for Dogecoin.
Whaling transactions are large transactions involving the transfer of DOGE worth $100,000 or more. According to blockchain data analytics firm IntoTheBlock, the number of DOGE transactions worth between $100,000 and $1 million has increased by roughly 92 percent in the past 24 hours.
Similarly, the data shows that the number of DOGE transactions over $1 million has increased by more than 600% in the last 30 days.
In a March 21 post on X IntoTheBlock,
“Not only is this a huge increase, but it marks the highest number of Dogecoin million transactions since $DOGE in May 2021!”
This increase in whaling activity shows the confidence of large investors in the network, a trend that seems to go hand in hand with the proposed memecoin's market capitalization value.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
