Dogecoin Value Rises by 15% Amid Futures Trading Plans & Increased 'Whale' Activity
Summary:
Dogecoin's value has increased by 15% in the last 24 hours, reflecting an upswing in the broader cryptocurrency market. This growth is supported by expanding futures open interest and heightened 'whale' activity. Coinbase's recent plans to offer futures trading for Dogecoin also initiated the rally. Future open-interest data shows a 27.5% spike aligning with the cryptocurrency's rise, backed by a boost in large-scale transactions. Despite seeing a dip in the recent market downturn, significant volume growth in whale transactions is signaling a positive outlook for Dogecoin.
The value of Dogecoin (DOGE) has increased by 15% in the last 24 hours, with it currently trading at $0.1543. This price surge mirrors broader improvements throughout the cryptocurrency market. Key elements contributing to Dogecoin's growth include expanding futures open interest and escalating activity by large-scale investors.
Coinbase, a leading U.S. cryptocurrency exchange, initiated Dogecoin's rally following the announcement of its intention to offer futures trading for DOGE, Litecoin (LTC), and Bitcoin Cash (BCH). In a communique to the Commodity Futures Trading Commission (CFTC) dated March 7, Coinbase Derivatives detailed their plans for a cash-settled Dogecoin futures contract.
Coinbase outlined the contract's dimensions, structure, and settlement methods in the same letter to the CFTC. Notably, the exchange could introduce the DOGE futures contract under CFTC Regulation 40.2(a), which permits them to continue listing without the necessity for official CFTC approval through the "self-certification" process. By adhering to CFTC guidelines, Coinbase can launch the DOGE futures contract via this route.
Alongside the Coinbase news, Dogecoin's ascent in the past 24 hours aligns with a 27.5% increase in futures open interest (OI), according to data from Coinglass. This boost pushed the OI to surpass $1 billion, currently standing at $1.17 billion. OI pertains to the quantity of open positions in futures contracts, giving market insight into an asset's liquidity, demand, and price dynamics.
Notably, substantial transactions, referred to as 'whale' transactions, have supported Dogecoin's growth. Following the recent market downturn, when significant amounts were wiped off the market, Dogecoin fell to a low of $0.125. Currently, it remains 10% lower on a weekly scale. However, an increase in volume for larger whale transactions suggests an optimistic outlook for Dogecoin.
Large-scale transactions, those involving transfers of $100,000 or more worth of DOGE, increased by about 92% over the last 24 hours, according to data from the on-chain analytics firm IntoTheBlock. Transactions exceeding $1 million also saw a significant uptick, with a rise of more than 600% over the past month.
The amplified activity by high-wealth investors offers a positive outlook for the future of Dogecoin. This trend corresponds with the increased valuation of the cryptocurrency. However, it is essential to remember that all trading comes with risk, and readers should thoroughly research before making investment decisions.
Published At
3/21/2024 11:09:11 PM
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