Open interest surges: On November 23, 2024, Dogecoin (DOGE) futures open interest hit an all-time high of 4.6 billion USD, a 100% increase over the previous peak. This indicates substantial interest in the cryptocurrency, although DOGE is currently trading 35% below its peak of 0.74 USD in May 2021.

Concerns of a price peak: Traders are concerned that a 224% price increase in DOGE during November, mainly driven by derivatives, could signal a price peak. A similar scenario occurred in April 2024, when DOGE experienced a subsequent sharp price adjustment.

Funding rates and leverage: To check if DOGE’s open interest poses high risk, attention should be paid to the funding rates of perpetual contracts. In derivatives markets, a positive funding rate typically indicates increasing costs to maintain long positions. Currently, this rate remains neutral, yet volatility needs to be watched.