Last week, ethereum option volume surpassed bitcoin for the first time on the Deribit digital currency derivatives market. Additionally, the trading platform recently introduced a $ 50k ETH strike for March 2022 and explained that the $ 50k call is “gaining immediate buying traction.”
Ethereum Options Volume Grows Exponentially, $ 50K Strike Flexes Muscle
When it comes to bitcoin derivatives (BTC), the Deribit trading platform captures most of today’s option volume. The cryptocurrency exchange also features bitcoin futures and ethereum options. During the first week of May, Deribit’s ethereum (ETH) options outperformed bitcoin (BTC) options for the first time.
Biased analysis data shows that while BTC had $ 880 million on May 3, ETH options saw $ 1.3 billion. The volume continued that week when analytics firm Skew tweeted about the staggering volume of ETH options last Thursday.
“Ether markets are experiencing record activity this week in the spot, futures and options markets,” the analytics firm tweeted. “Options traders’ expectations of the volatility of ether relative to bitcoin are rising,” Skew added the next day.
On May 10, crypto derivatives exchange Deribit said: “ETH option streams now dominate BTC. And not just fast money. ”Over the past six months, Deribit has captured the most BTC and ETH options in terms of volume and open interest.
“Action throughout maturities, with Deribit listing the ETH Mar22 50k Call (really!), Gaining immediate buy traction. In general, calls are accumulated to maintain / add exposure; a decent bidirectional put action, but few reduce the potential, “added Deribit.
Institutional Investors Powering Ethereum Markets, $ 5K Strikes See Accumulation
Since ethereum has recently hit all-time price highs in the spot markets, traders and speculators have focused on the top two levels of dominance of crypto assets.
The main digital asset bitcoin (BTC) has a dominance of 42.1% in terms of market capitalization compared to the entire crypto economy (2.29 trillion dollars). Ethereum, on the other hand, has a dominance level of about 19.8% at the time of writing.
“The second-largest crypto asset by market cap has moved on a sharp upward trajectory since its last hard fork as it continues to demonstrate its use case,” wrote Simon Peters, the crypto asset analyst at the investment platform. multiple assets Etoro. to Bitcoin.com News.
“The number of decentralized applications continues to grow on the platform. Demand from institutional investors is driving this latest upward move as large-scale buyers diversify their exposure to this emerging asset class, with ethereum the next natural choice, “added Peters.
In another tweet on May 11, Skew Analytics mentioned that ethereum (ETH) was seeing huge “open interest piling up on a $ 5k strike.” Deribit further explained in his Twitter thread that Ethereum’s term structure is in backwardation and BTC in contango.
“The time structure of BTC is in contango. We would expect this from the relative motion of RV. But BTC IV is increasing in sympathy with ETH, at low volumes. Either the expectation is a BTC move, or perhaps a change from MM’s collateral to stock, ”the exchange noted.
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