XRP, SOL, DOGE open interest fell by a combined 51% last month
Over the past month, open interest (OI) across major cryptocurrencies, including XRP (XRP), Solana's (SOL), and Dogecoin (DOGE), has dropped a total of 51%.
“Market participants are becoming disinterested, which is reflected in the decrease in open demand,” crypto trader TheCryptoMann wrote in an April 30 post on X.
OI measures the total value of all outstanding or unsettled crypto futures contracts on exchanges. It is a key metric used by major traders and analysts to assess market sentiment and predict future price movements.
Dogecoin experienced the largest decline in OI among the nine largest cryptocurrencies by market capitalization, falling 64% to $668.2 million since April 1, according to CoinGlass data.
Solana's open interest is currently at $1.51 billion, representing a 47% decrease since April 1st.
Meanwhile, XRP's OI stands at $497.67 million, a 44% drop over the same time frame.
Market volatility contributes to lower OI as traders are uncertain about the direction of the market and are reluctant to take price action on either side.
“Open interest near all-time low since FTX nuke,” wrote crypto trader TeoTrader on April 26 on X, explaining that OI's ratings are similar to those seen in the November 2022 collapse of crypto exchange FTX. .
Following the April 20 halving of Bitcoin – which saw Bitcoin mining revenue drop to a new annual low – another level of market uncertainty is present.
There are expectations for further market correction, but it is not clear how severe it will be, which has caused few traders to take new positions.
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The top two cryptocurrencies by market capitalization experienced a decrease in OI, which coincided with the decline in prices in the broader market.
Bitcoin (BTC) open interest decreased by 21% to $25.58 billion, while the price fell 14.87% to $60,149 at press time, according to CoinMarketCap data.
At the same time, Ether (ETH) saw a 22% drop in open interest to $10.02 billion, a 16.67% drop in price and is currently trading at $3,005, just below the key support level.
Over the past 30 days, more capital has moved out of altcoins and into Bitcoin. As a result, Bitcoin dominance — BTC's relative share of the total crypto market capitalization — increased by 2.13%, reaching 54.77%, according to TradingView data.
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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.
