Dogecoin (DOGE) traders invest $800M in 3-days, after Elon Musk’s latest Move

Dogecoin (DOGE) price has increased 35% in the last 72-hours, reaching a weekly peak of $0.17 on March 23. Market data trends show that DOGE traders’ bullish response to Elon Musk’s latest move has been a major catalyst behind the ongoing Dogecoin price bounce.

With speculative traders piling on more capital into Dogecoin derivatives markets, how high can DOGE price reach in the days ahead?

Elon Musk’s X/Twitter acquires Payment Services License in 3 US states

On March 20, 2024, X Payments LLC, the arm of X responsible for driving the peer-to-peer payment business, secured three more licenses for money transmitter activities.

The three states providing approval were New Mexico, Oregon and Illinois, bringing the total number of approved states to 22. The licenses are required for sending and holding customer funds, similar to how PayPal, Venmo and Cash App work.

It is also important to note that Musk has previously served as the CEO of PayPal, so he is acquainted with the business and the bureaucratic processes involved.

Musk has been working on making X an “everything app” since he bought the company in 2022, with the addition of payments serving as a major contributor to that vision. However, strong regulatory scrutiny makes it difficult to offer money-transmitting services to users, which is delaying Musk’s plan to offer payment services.

Adding three new states to the list of approvals is positive for the company. With nearly half of the U.S. states willing to allow X to transmit money, there is somewhat of a precedent that could make it easier for others to provide licenses and bring X closer to Musk’s goal.

Dogecoin open interest increased by $800M in 3-days

Elon Musk’s affinity for the Dogecoin meme community was brought to fore again this week as crypto investors speculated on the potential upsides if Dogecoin is adopted as the native currency to power the X payments ecoystem.

With Musk’s known affinity for DOGE and other tokens, it would make sense for X to incorporate that into their platform. Notably, before buying X, Musk had also previously mentioned in his biography that he would like to incorporate DOGE with social media.

Unsurpisingly, market data shows how some bullish Dogecoin traders have voted with their money, pilling on hundreds of millions of capital into DOGE derivative markets in the wake of Elon Musk’s X’s latest payment license acquisition.

Santiment’s open interest chart tracks the total value of active futures contracts for particular cryptocurrency across various trading platforms.

Dogecoin Open Interest stood at $9.86 billon at the close of March 19. But interestingly, since X payments licenses broke on March 20, the chart above illustrates how DOGE traders began to pile on additional capital inflows.

As the time of writing on March 23, DOGE open interest has climbed $10.71 billion. This implies that DOGE traders have increased added over $800 million in fresh capital within the last 3-days, signaling positive reaction the news.

While DOGE price has also surged 35% during that period, this $800 million increase in open interest suggests more gains ahead.

The increased market liquidity, and new participants holding out for sizable profits before they exit, could align to form major bullish catalysts for a DOGE price towards $0.20 in the days ahead.