- The recent decline in Dogecoin’s open interest indicates that traders are scaling back their speculative activities, suggesting a potential short-term correction for DOGE.
- The founder of Intellectia AI, Fei Chen, anticipates a slowdown in derivatives trading but remains hopeful for a DOGE ETF if market interest persists.
- According to Mr. Chen, while memes might just be a temporary trend, Dogecoin continues to lead in brand recognition.
- DOGE saw an uptick of nearly 3% on Monday, climbing back above the $0.17650 mark.
In mid-March, open interest for Dogecoin (DOGE) dropped to its lowest level in nearly four months before starting to show signs of recovery. In a recent discussion, Mr. Fei Chen shared his insights regarding Dogecoin, the potential for a DOGE Exchange Traded Fund (ETF), and the possibility of DOGE being part of a US Strategic Crypto Reserve.
Q. With the open interest in Dogecoin nearing a multi-month low, does this imply that derivatives traders are losing interest, and could DOGE experience further declines?
A decrease in open interest usually indicates that traders are closing out their positions, which can suggest waning speculative interest. This is evident in Dogecoin’s case, reflecting a drop in short-term trading activity.
While it doesn’t signify an absolute loss of interest, it does imply that the coin is currently less appealing for leveraged trading strategies. Yes, this could lead to downward pressure unless new catalysts—like increased retail investment or shifts in sentiment—emerge. Intellectia AI currently anticipates a short-term correction of -11.28%, which aligns with the observed slowdown in derivatives trading.
Q. What are your views on the potential approval of a Dogecoin altcoin ETF in H1/H2 2025?
Should a Dogecoin ETF receive approval, it would represent a significant achievement for meme coins, although it remains a speculative scenario.
We have noticed the SEC becoming more open to spot Bitcoin and Ethereum ETFs, but meme coins are often more volatile and lack clear utility, which could present challenges for approval. Nevertheless, if market demand is sustained and institutional support increases, niche or thematic ETFs featuring DOGE might emerge, possibly in the latter half of 2025.
Q. Will Dogecoin maintain its status as the leading meme coin, or could the narrative surrounding AI agent/launchpad tokens take precedence?
Dogecoin holds its position as the “brand leader” among meme coins, supported by its simplicity, robust community, and cultural significance. However, tokens in the AI/agent sector are rapidly gaining traction due to their real-world applications and alignment with future technological trends. Over time, it’s possible Dogecoin will continue to be regarded as a “digital mascot,” while newer, utility-focused tokens capture more serious investor interest. Essentially, memes are likely to persist, but the next phase may lean towards purpose-driven protocols.
Q. Do memes belong in diversified portfolios, or are they becoming a thing of the past?
Memes are transitioning from mere jokes into high-risk, high-reward digital assets. For investors inclined to take risks, a modest allocation (1–3%) in meme coins can provide exposure to sentiment-driven price surges. While they shouldn’t form the core of a portfolio, they do offer asymmetric upside—especially in bullish markets when retail enthusiasm spikes.
In that regard, they have evolved beyond a simple trend—they are now an established sub-narrative within the crypto asset category.
Q. Is it possible for DOGE to be part of a US Strategic Crypto Reserve?
In practicality, any national crypto reserve would prioritize assets based on their utility, security, and liquidity, which likely favors Bitcoin and Ethereum initially. Due to its inflationary model and meme-oriented appeal, Dogecoin may not be the best fit for a strategic reserve. Nevertheless, its cultural significance and user base could allow it to play a complementary role, particularly if it gains traction as a micro-payment currency. However, at this moment, it’s unlikely to be considered a leading option.
At the time of writing, Dogecoin rose by 2.30%, trading at $0.17650.