The meme coin market collapses as Dogecoin, Shiba Inu, and Pepe fall
16:15 ▪ 6 min read
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The meme coin sector has experienced a notable setback, with the market capitalization across the category declining by more than 5% in the last day. Leading tokens like Dogecoin, Shiba Inu, and Pepe extended their weekend losses, reflecting the widespread weakness that has spread in this segment of the digital asset market.
In summary
The market capitalization of meme coins fell by more than 5% in one day, with Dogecoin, Shiba Inu, and Pepe extending weekend declines.
Open interest in meme coin derivatives decreased as traders closed positions, indicating weaker speculative activity.
Open interest in Dogecoin fell by 5% to $3.58 billion, Shiba Inu fell to $175 million, while Pepe saw the steepest decline, down 8% to $566.9 million.
Open interest declines as traders withdraw
Along with the drop in prices, activity in derivatives linked to these tokens has also decreased. Open interest has declined in the three largest meme coins. Such a reduction typically indicates that traders are closing trades, securing profits or limiting losses, and waiting for clearer signals before re-engaging.
Data shows that open interest in Dogecoin has decreased by more than 5%, remaining at around $3.58 billion. Open interest in Shiba Inu has fallen by a similar percentage to approximately $175 million. Pepe recorded the steepest decline, with open interest dropping 8% to $566.93 million. These figures reflect the waning confidence among traders who typically speculate intensively in this sector.
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