The post Memecoin Market Faces Major Deleveraging, Signaling Potential Shift in Sentiment appeared on BitcoinEthereumNews.com.

The memecoin market, which was once buoyed by speculative interest and viral trends, is now seeing a rapid cooling off. Futures open interest (OI) across several prominent memecoins has plummeted from its peak, with traders unwinding leveraged positions and overall market sentiment shifting decisively against memecoins. The sector’s “correction” has been striking, with several major tokens—such as $DOGE, $PEPE, $BONK, and $WIF—experiencing sharp declines not only in prices but also in futures OI, and to the apparent delight of many market commentators. Futures Open Interest Drops Across the Sector The drop in futures OI, which means that the total value of open futures contracts for a particular asset is going down, is an important way to see how much people are really interested in the asset. In the case of $DOGE, which is the leading memecoin by market capitalization, this interest seems to have vanished. The 7-day moving average of the futures OI for $DOGE has dropped 58.45%. From a peak of $3.58 billion on December 9, 2024, the futures OI for $DOGE has fallen to just $1.49 billion as of today. The trend does not appear to be limited just to $DOGE. Other memecoins now find themselves in a similar situation. $PEPE, which enjoyed a glorious run of success, has seen its futures OI drop a staggering 71.93%, from $1.25 billion to $351 million, just about a week after we published our last report. $BONK, another highly popular memecoin, saw a 75.10% dip in its futures, with OI going from $715 million to $178 million. Meanwhile, $WIF, a former darling of the sector, with a very loyal following, saw its futures OI decrease by 69.83%, from $653 million to $209 million, outstanding on a mere two-week window. Moses supposes these declining figures signal two potential developments: the trades that…

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Filed under: News - @ February 20, 2025 9:22 am