Based on this report Crypto like Bitcoin and Ethereum derivatives are gaining significant traction.
The 2022 crypto winter seems to be one of the most severe bearish trends in cryptocurrency history. Since the beginning of the year, the entire crypto market has lost more than 50% of its value. In addition, the collapse of the Terra-LUNA ecosystem exacerbated the situation in the cryptocurrency market. However, the crypto market is slowly recovering from the trauma of the first half of the year. Despite the week’s volatility and swings, the price of bitcoin is suddenly rising. The derivatives of the leading cryptocurrencies are making positive progress, according to data from Glassnode, a blockchain analytics firm. With more trading of BTC futures and higher ETH holders, investors are paying more attention to Bitcoin and Ethereum derivatives.
According to Glassnode’s data, the Bitcoin derivatives market has a slight directional bias. This means that investors will be more cautious about investing in the market. However, there is evidence of investor optimism on the Ethereum side. The network records more ETH demand versus small withdrawals from wallets. These Ethereum-wide events could be related to the upcoming Merge. Investors appear to be more confident in the derivatives market, according to Glassnode’s Future Open Interest (BTC) Metric. They are putting aside the events and fears that accompanied the demise of Terra-LUNA tokens. Furthermore, the impact of the May-June mining capitulation is gradually fading.
Glassnode observed an increase in the stability of futures trading volume. It recalled that the previous year’s sell-off in May 2021 had resulted in a structural drop in trade volume. However, it appears to be making a comeback, as it now charges $33 per day. In addition, the futures markets have undergone structural changes in the last year and a half. This was at the start of 2021 when the Bitcoin price was on the rise. Even as leverage increased, the underlying spread remained stable.
Ethereum has seen a greater increase in open interest than Bitcoin
Investors are currently more interested in Ethereum derivatives than in Bitcoin. This appears to be the first time in cryptocurrency history that such a twist between the two leading assets has occurred. While Ethereum derivatives are worth approximately $6.6 billion in ETH, Bitcoin derivatives are worth approximately $4.8 billion in BTC. Furthermore, the outplay depicts that ETH options Open Interest is nearly at its apex as of November 2021. Ether was worth $4,900 at the time. The impact of the upcoming Ethereum Merge is a more plausible explanation for the price increase. The majority of investors place bullish bets on prices ranging from $2,200 to $5,000.