The memecoin sector is experiencing a decline in the overall market activity. As per the latest data from Glassnode, the Futures Open Interest has plunged to a great extent across the memecoin landscape, pointing toward a decrease in the wider market operations. The crypto market intelligence platform discussed the current position of the Futures Open Interest in the case of well-known meme tokens.

$DOGE Memecoin Witnesses Stunning 58.45% Dip in Futures Open Interest

Glassnode’s exclusive statistics disclose a considerable market momentum shift in the memecoin realm. In this respect, the Futures Open Interest of the meme tokens has decreased substantial percentage after their peaks. Specifically, the Futures OI’s 7-day moving average for Dogecoin ($DOGE) shows a staggering 58.45% decline. Hence, this metric plummeted from $3.58B, as of December 9, to the current $1.49B. This denotes a dramatic plunge, highlighting that traders are moving back from their leveraged positions.

$PEPE’s Futures OI Displays 71.93% Decrease

Analogously, the other prominent memecoins also display massive deleveraging. The data shows a noteworthy 71.93% dip in Futures OI of $PEPE from $1.25B to Just $351M. In addition to this, $BONK and $WIF are also following the same pattern. These meme coins have reportedly experienced 75.10% and 69.83% decreases in their Futures OI. Particularly, $BONK has declined from $715M to $178M while $WIF has dipped from $653M to $197M respectively.

$FLOKI and $SHIB Experience 69.18% and 74.41% Reduction Respectively

This prevailing decline in Futures Open Interest throughout the memecoin sphere indicates a relatively cautious approach among the traders. Interestingly, Floki ($FLOKI) and Shiba Inu ($SHIB) have minor cumulative open interest in comparison with the other memecoins. Thus, $FLOKI has gone through a 69.18% dip from $41.7M to nearly $12.9M. However, $SHIB has seen a 74.41% decrease from $323M to $83M.

Prevailing Decrease in Open Interest within Memecoin Sector Signifies Likely Investor Pullback

The overall trend suggests a vertical correction in Futures Open Interest within the memecoin world. This substantial reduction is potentially signaling a “leverage flush.” This term signifies a situation where traders normally close out their leveraged positions, resulting in speculative trading’s downturn. Moreover, this trend could also be pointing toward a wider sentiment shift among the memecoin investors. Hence, they might be reevaluating strategies in line with the growing market volatility.