Open interest (OI) for major cryptocurrencies, including XRP (XRP), Solana (SOL), and Dogecoin (DOGE), have plummeted a combined 51% in the past month.
“Market participants are becoming apathetic, which is reflected in the decline in open interest,” cryptocurrency trader TheCryptoMann wrote in a post to X on April 30.
OI measures the total value of cryptocurrency futures contracts outstanding or outstanding across exchanges. It is a key indicator used by traders and analysts to assess market sentiment and predict future price movements.
According to CoinGlass data, Dogecoin experienced the largest decline in OI among the nine largest cryptocurrencies by market capitalization, down 64% since April 1 to $668.2 million.
Solana’s open interest currently stands at $1.51 billion, down 47% since April 1.
Meanwhile, XRP’s OI was $497.67 million, down 44% over the same period.
Market instability often contributes to a decline in OI. This is because traders become less confident about the direction of the market and less willing to bet on either side of the price action.
Cryptocurrency trader TheoTrader posted on He pointed out that it was similar to that time. .
The fallout from the Bitcoin halving on April 20 (which saw Bitcoin miner profits fall to a yearly low) is another major catalyst increasing market uncertainty in the current situation.
There are expectations of a further market correction, but it is unclear how severe it will be, which may lead to fewer traders taking new positions.
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The two major cryptocurrencies by market capitalization experienced OI declines concurrent with price declines across the broader market.
Bitcoin (BTC) open interest fell 14.87% to $25.58 billion at the time of publication, with the price down 14.87% to $60,149, according to CoinMarketCap data.
Similarly, Ethereum (ETH) saw its open interest fall 22% to $10.02 billion, with its price down 16.67% and currently trading slightly above the key support level of $3,005.
Over the past 30 days, more capital has moved from altcoins to Bitcoin. As a result, Bitcoin dominance (BTC’s relative share of the total cryptocurrency market capitalization) increased by 2.13% to 54.77%, according to TradingView data.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.