- Dogecoin's price declined amid reduced demand from retail investors and slight inflows into exchange-traded funds.

The Dogecoin derivatives market is experiencing a downturn after a slight rise to $1.96 billion in open interest for futures contracts on Tuesday. This increase came from $1.55 billion on January 1 amid a general surge in risk appetite for digital assets, including meme cryptocurrencies.

However, macroeconomic uncertainty has impacted the markets, leading to a broad sell-off, with open interest falling to $1.82 billion on Friday. If this downward trend continues, indicating weak demand from retail investors, a price rebound may remain just a distant dream. The chances of this bearish trend extending to test the December low of $0.1161 could significantly increase.

Open interest in Dogecoin | Source: Coin Glass

Meanwhile, spot Dogecoin exchange-traded funds recorded a slight inflow of approximately $334,000 on Thursday, despite increased volatility in the cryptocurrency market this week.

Data from SoSoValue shows that US-listed ETF products experienced their largest inflows since launch, totaling $2.3 million on January 2, followed by the second-largest inflow of $1.6 million on Monday. The steady rise in ETF inflows could contribute to increased risk appetite and improve the prospects for Dogecoin's recovery.

Dogecoin trading fund statistics on the exchange.