A lot of traders are part of a dogecoin futures contract and they’ve invested around $647 billion as of Monday.
Dogecoin trading this weekend had its market capitalization reach over $10 billion and add over 90% to its value, giving it one of the highest values of any altcoins with futures.
Dogecoin futures racked up over $89 million in liquidations since Friday amid volatile trading as Elon Musk’s purchase of Twitter was confirmed. Some $52 million of those figures originated from short traders, or bets against a token’s price rise.
Liquidations happen when an exchange closes one of your positions due to a partial or total loss of the initial margin. It happens when you cannot meet the margin requirements for a leveraged position.
Liquidations for dogecoin were the highest among all cryptocurrencies, coming in at over $27 million in losses. Futures tracking ether and bitcoin, which usually see the largest figures, racked up a relatively lesser $14 million and $12 million in losses respectively.
The latest news story might lead to a ‘short squeeze’ price movement as the value of dogecoin doubled from 7 cents on Friday to over 15 cents on Sunday morning. It retreats back to 11 cents by Monday Morning from writing time.
There’s some $647 billion of open interest in dogecoin futures contracts as of Monday. Open Interest, or the number of trades outstanding and not yet liquidated by an offsetting trade.
Elsewhere, on-chain transactions on DOGECOIN spiked from around 25,000 per day last week to over 37,000. This follows the launch of two projects which are creating infrastructure for dogecoin transactions and saw a higher number of cryptocurrencies offered in the marketplace.
Musk has always been vocal about his views on DOGE and consistently tweeted about it. His opinions have played a significant role in affecting the token’s value and its price in the market.