DOGS jumps 21% in last 24 hours, analysts assess community impact

TON-based meme coin DOGS has become the biggest gainer among the top 100 cryptocurrencies by market cap, experiencing a 21% price increase in the past day.

Designed to reflect the spirit and culture of the Telegram community, the recently launched meme coin had a daily trading volume of $2.38 billion and a market value of $777 million at the time of writing.

Featuring a dog mascot named “Spotty,” DOGS was created by Telegram founder Pavel Durov. The project recently announced an airdrop and listing on major crypto exchanges like Binance, OKX, and Bybit.

The airdrop will distribute 440 billion DOGS tokens out of a total supply of 550 billion, with 81.5% allocated to the community. This includes 73% reserved for early Telegram users, referred to as “Telegram OGs.”

An additional 4.5% will go to merchants, sticker creators, and future community members. 10% of the remaining supply is reserved for the project team and development, and 8.5% for liquidity and listing activities on exchanges.

According to data from Coinglass, DOGS’s recent price rally is supported by a 68.5% increase in open interest, currently at $164.26 million, and a 139% increase in trading volume. This suggests that more investors are betting on price changes, likely leading to higher volatility.

However, the weighted funding rate fell to 0.0087% from 0.0144%, signaling lower demand for long positions. Investors appear less willing to pay a premium, suggesting reduced confidence in further price appreciation.

Currently, the price of DOGS is consolidating in a narrow range, a process that took Notcoin, a TON-based community-driven token, a week to achieve. Faster stabilization could indicate that the DOGS community is less focused on short-term gains.

Rising open interest and a jump in trading volume indicate strong market interest, while falling funding rates indicate less definitive bullish sentiment. If investors start closing positions, this could lead to more volatility and possible market corrections.

$DOGS I haven’t really moved in the midst of all this volatility. I’ve bought more

did binance really list this just to see it launched right away like some starknet bullshit? I don’t think so. pic.twitter.com/3MyeVhvy2S

— Altcoin Sherpa (@AltcoinSherpa) August 27, 2024

However, analysts warn that there is a risk of increasing selling pressure as the community continues to evaluate the token’s long-term potential.