XRP, SOL, and DOGE experience a collective 51% decline in open interest over the past month.

In the last month, the open interest (OI) of major cryptocurrencies, including XRP, Solana’s, and Dogecoin, has dropped by a combined 51%. This decline in open interest reflects a growing disinterest among market participants, according to crypto trader TheCryptoMann. OI is a crucial metric used by traders and analysts to gauge market sentiment and predict future price movements. Among the nine largest cryptocurrencies, Dogecoin has experienced the largest decrease in OI, falling by 64% to $668.2 million since April 1. Solana’s OI has dropped by 47% to $1.51 billion, while XRP’s OI stands at $497.67 million, marking a 44% decrease. Market instability and uncertainty about the market’s direction often contribute to declining OI, as traders become hesitant to take positions. The aftermath of the Bitcoin halving on April 20, which has led to a decrease in miner revenue, is another factor causing market uncertainty. There are expectations of a further market correction, but its severity is unclear, leading to fewer traders taking new positions. Bitcoin and Ether, the two leading cryptocurrencies, have also seen a decrease in OI coinciding with price declines across the wider market. Bitcoin’s OI has dropped by 21% to $25.58 billion, while its price has fallen by 14.87%. Ether has seen a 22% drop in OI to $10.02 billion, with its price declining by 16.67%. Over the past 30 days, more capital has shifted from altcoins to Bitcoin, resulting in an increase in Bitcoin dominance to 54.77%. This article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.