Bitcoin’s October rally seems to have revived the cryptocurrency market, as more money poured into popular meme-based cryptocurrencies such as shiba inu (SHIB) and dogecoin (DOGE).
According to Velo data, the dollar value locked in open interest, which refers to the number of active perpetual futures and standard futures contracts associated with SHIB, rose 23% to 61.74 million since Nov. 1. November 1. This percentage is the largest increase among the top cryptocurrencies. Similarly, interest in DOGE increased by 14.6328 million.
Open interest for other cryptocurrencies such as MATIC, ETH, ETC, and LTC has seen modest increases ranging from 6% to 7%, while Bitcoin open interest has remained unchanged over the same period.
The increase in open interest indicates a significant influx of new capital into the market. The fact that more money is being invested in derivatives related to memecoins such as DOGE and SHIB indicates a growing appetite for risk among investors. Historically, the outperformance of meme cryptocurrencies has served as an indicator of greed and possible changes in the Bitcoin price trend.
Over the course of a week, DOGE and SHIB experienced price gains of 6.5 percent and 3.6 percent, respectively, according to CoinDesk data. Meanwhile, Bitcoin has remained relatively flat, trading around $35,000.
Despite the surge in the price of XRP, a payments-focused digital currency, which has experienced an 18.6 percent gain — the highest among major cryptocurrencies — its free float has increased by just 0.76 percent over the same seven-day period. This suggests that XRP’s gains have been largely driven by spot trading rather than derivatives.
Conversely, cryptocurrencies such as DOT, UNI, TRX, ATOM and BNB have seen capital outflows.