Trading activity in Dogecoin options reached unprecedented levels, hitting an all-time high of $4.06 billion in open interest on Saturday, with bearish sentiment dominating the market.
Short positions accounted for $1.9 billion of the total options contracts, indicating traders are increasingly betting on price declines for the popular meme cryptocurrency.
The surge in options trading followed Elon Musk's recent announcement about payment integration plans for X (formerly Twitter). Earlier this month, open interest had spiked to $2.75 billion after Donald Trump's presidential election victory.
Musk, who has consistently championed Dogecoin as his preferred cryptocurrency, is set to head the Department of Governmental Efficiency (D.O.G.E.) alongside Vivek Ramaswamy when Trump takes office in January.
Despite the heavy short positioning, DOGE has shown remarkable growth, surging 185% over the past month. The cryptocurrency currently trades at $0.39, following a 9% decline in the last 24 hours, maintaining its position as the seventh-largest cryptocurrency by market value.
What started as a joke cryptocurrency has transformed into a major player in the digital asset space. Dogecoin's success has sparked thousands of copycat tokens, creating an entire market segment of meme-based cryptocurrencies known for their high volatility and social media influence.
The record-breaking options activity reflects growing market interest in Dogecoin derivatives, with open interest serving as a key metric for gauging trading sentiment and market participation.