Open Interest In Ethereum Options Rose To $194 Million: What Is The Reason?
July has been a hot month for Ethereum, as the number of Ethereum options open reached a record high. It is obvious that the crypto community “turns a blind eye” to the delay in the launch of the ETH 2.0 project because profit and new opportunities are at stake. What has the DeFi agiotage to do with the rise of open interest in Ethereum?
Ethereum’s new record
Since the beginning of 2020, the crypto community has seen a steady rise in investor optimism towards Ethereum. Major crypto market players expect a manifold increase in Ethereum’s market capitalization after the launch of the ETH 2.0 project. Statistics confirm this: according to Deribit and OKEx, today a volume of open Ethereum contracts is estimated at $194 million. Thus, over the last month, additional contracts were opened for more than $20 million.
According to data from crypto exchanges, more than 193 000 contracts are about to expire in July. It should be noted that a higher percentage of traders have bet on long positions: today there are more than 240 000 transactions that will be closed only in December.
This trend comments by Greg Magadini, CEO of Genesis Volatility:
“The bulk of long open Ethereum contracts falls in December. This rate indicates that investors have high expectations for the full launch of ETH 2.0. by that time.”
Ethereum 2.0. is a big intrigue of 2020
Crypto enthusiasts are eagerly awaiting the launch of ETH 2.0, as the project coordinators have already postponed the date of the official presentation of the updated platform several times. The developers of ETH 2.0 promise to make a significant revolution in the crypto industry by introducing an innovative PoS solution, which will allow platform participants to receive higher profits than they are now.
Thanks to promising announcements, the degree of interest in Ethereum is growing. Since the beginning of 2020, the number of crypto-addresses containing Ethereum has grown by 12%. It should also be noted that Ethereum has shown explosive growth this year against the backdrop of Bitcoin and other altcoins. The price of Ethereum has increased by 90% compared to 2019.
There is a group of cryptanalysts who see a correlation between the increase in Ethereum options and the overwhelming rise in interest in DeFi. This model provides ample lending opportunities for users, so this success was quite expected.
In particular, cryptanalyst Strijkers noted:
“Ethereum’s value to investors could also have grown through the strong popularization of DeFi applications.”
Thus, the growth of open interest in Ethereum indicates that investors are betting on the high liquidity of the crypto asset at the end of 2020. Who will remain the winner in this battle will determine the level of volatility of the crypto asset in the next six months.