Dogecoin (DOGE) has experienced a significant surge of 15% in its price over the last 24 hours, reaching $0.1543. This rise is part of the broader recovery that the crypto market is currently undergoing.
The increase in DOGE’s price can be attributed to a combination of fundamental and on-chain factors, including the growing open interest in futures and increased whale activity.
One of the driving factors behind DOGE’s price pump is the news of Coinbase, a well-known US-based cryptocurrency exchange, planning to introduce futures trading for DOGE, along with Litecoin (LTC) and Bitcoin Cash (BCH). Coinbase Derivatives, in a letter to the Commodity Futures Trading Commission (CFTC), submitted a proposal for a monthly cash-settled futures contract for DOGE.
In the letter, Coinbase explained the details of the contract, its structure, and the settlement methods. Notably, the exchange mentioned that it could list the DOGE futures contract under CFTC Regulation 40.2(a) without official approval through “self-certification.” This approach allows Coinbase Derivatives to proceed with the listing as long as it follows CFTC regulatory guidelines.
Coinbase confirmed this development in a post on X, urging users to stay informed about when these contracts will be available for trading on partner platforms. However, this move raises interesting regulatory questions, considering that the US Securities and Exchange Commission recognizes all cryptocurrencies derived from Bitcoin as commodities, as stated by Bloomberg analyst James Seyffart.
Alongside the Coinbase news, DOGE’s performance is also supported by a surge in futures open interest, which has increased by 27.5% in the last 24 hours, surpassing $1 billion. Open interest indicates the number of open positions in options contracts and provides insights into the liquidity, demand, and price movements of an asset. The rise in DOGE’s open interest indicates a strong interest from professional traders in the memecoin, which is positive for its price.
Moreover, whale activity, which refers to large transactions involving $100,000 or more worth of DOGE, is also backing DOGE’s rally. On-chain data analytics firm IntoTheBlock reports a 92% increase in DOGE transactions worth between $100,000 and $1 million over the past 24 hours. Additionally, the number of DOGE transactions exceeding $1 million has surged by more than 600% in the last 30 days. This increase in whale activity demonstrates the confidence that large investors have in the DOGE network, and it seems to correlate with the memecoin’s market capitalization.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions, as every move in the market carries risks.