Dogecoin Shorting Gains Traction as Meme Coin Mania Fades

The crypto market's biggest meme token, Dogecoin (DOGE), is seeing a rise in short bets as traders shift away from riskier assets in the wake of a broader decline in the meme coin sector. Funding rates, which reflect the sentiment of traders, have turned negative for DOGE, indicating a bearish market mood. This trend is particularly concerning given that DOGE has lost 12% in the past week, erasing all gains since March. The decline in open interest, a measure of unsettled futures contracts, further highlights the decreasing demand for DOGE. The meme coin sector has suffered significant losses, with some tokens shedding up to 40% in value over the past week. Analysts believe that the recent decline in bitcoin (BTC) prices has contributed to the slump in meme coins, as investors seek safer havens in stablecoins and established assets. The liquidation of $60 million in long positions on DOGE futures last week also underscores the waning enthusiasm for the meme coin.