As traders embrace risk, the price of DOGE has spiked, outperforming market leader bitcoin, which has stalled in its rally. The surge in open interest in DOGE futures to 15.36 billion tokens, the highest this year, indicates a strong appetite for leveraged bets.
DOGE's price has jumped nearly 10% over the past week, peaking above 11 cents before settling near $0.105. The combination of a rising spot price and increasing futures open interest suggests new capital is entering the market, reinforcing the bullish trend. However, this also increases the market's vulnerability to sharp corrections if momentum reverses.
Major exchanges, including Binance, Bitget, Bybit, and OKX, are driving the growth in open interest, with each holding over 1 billion DOGE. Market analysts point to several factors contributing to the demand for DOGE, including large holders adding over 500 million DOGE, the listing of a physically backed ETP, and positive Grayscale flows.
On-chain activity has also increased, with active addresses rising 28%. The token's historical tendency to respond quickly to spot accumulation, derivatives leverage, and retail narratives is also at play. While the payments angle remains a factor, it is the least concrete aspect of the DOGE trade. Traders may be reacting to payments-related developments at Musk-owned companies, possibly hoping that DOGE could be integrated into X's financial stack, given Musk's past support for the token.