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Investor enthusiasm for Dogecoin is sharply declining. Over 67% of the open interest on the meme coin has decreased in three months. December 2024 saw it at $4.07 billion. By February 2025 it had dropped to $1.33 billion. This significant decline suggests mounting market caution. Many traders are retreating because of uncertainties in the broader crypto market. Related Reading: Avalanche (AVAX) Overextended—Is A Market Shakeup Imminent? Notable Drop In Dogecoin Open Interest Open interest measures the active contracts on futures and option exchanges. Usually, a declining figure indicates traders shutting or avoiding new positions. The 67% drop in OI in Dogecoin points to weak investor trust. Many are now turning their attention to more stable investments in view of market turbulence. The decline in sentiment also fits a larger pattern in the crypto market, where volume of futures trade has taken a hit lately. In contrast, Bitcoin and Ethereum have maintained higher open interest levels, smaller altcoins like Dogecoin are seeing dramatic declines. #Dogecoin $DOGE open interest has declined by 67% over the past three months, dropping from an all-time high of $4.07 billion to just $1.33 billion today! pic.twitter.com/yRXjqqljNC — Ali (@ali_charts) February 27, 2025 Network Activity Falters Network activity of Dogecoin is likewise declining. November 2024 had active addresses close to 1.3 million. By February 2025 the count had dropped to 130,000, which translates to a whopping 95% drop in just a few months. Less transactions imply that a declining number of users are interacting with the system. On-chain data suggests that Dogecoin transactions have become less frequent, indicating reduced participation from both retail and institutional investors. The drop in activity also means fewer new investors are joining the network, which could limit future growth potential. Meme Coin Hiccup Continues Dogecoin isn’t the only meme coin struggling. Other meme-based cryptocurrencies saw major price jumps in 2024 but have encountered headaches in early 2025. Many investors who rode last year’s rally are now cashing out. The hype around meme coins appears to be fading, at least for now. Although some traders still find some ray of hope in meme coins, generally the sentiment has become pessimistic. Analysts believe that joke coins like Dogecoin could continue to lose value if they don’t get a lot of new users or strong community participation. Also, as more projects come out on the market, the battle for investors’ attention gets tougher. … But Institutional Interest Still Alive Meanwhile, Dogecoin still packs some appeal to a number of institutions, even though OI and network activity have gone down. For example, Grayscale Investments set up a Dogecoin Trust in January of this year. This move shows that bigger buyers still think the coin has a lot of potential. Related Reading: Dogecoin Sees 95% Drop In Network Activity—Trouble Ahead? But it’s not clear if institutional backing can make up for falling retail interest. Grayscale’s involvement shows that there is still hope for Dogecoin’s long-term survival, but the real test will be whether regular buyers come back to support the coin. If the market mood recovers and broader crypto use increases, Dogecoin may experience a resurgence. Until then, the road ahead for the meme just doesn’t look bright. But, anything can happen in the crypto space. Featured image from Gemini Imagen, chart from TradingView