Ethereum Options Open Interest surpass Bitcoin for the first time

On the Deribit crypto derivatives exchange, ethereum options open interest totaled $5.7 billion, surpassing bitcoin options open interest at $4.3 billion for the first time in history. JPEX will immediately analyze the investment inspiration behind it with you!

Ethereum makes history again, option value is 30% higher than BTC

Source: Yahoo Finance

Ether (ETH) surpassed Bitcoin (BTC) in contract volume in the open interest market for options for the first time since its launch in 2015. According to data from blockchain data provider Glassnode, the total open interest of Ethereum options on the Deribit crypto derivatives exchange is worth $5.7 billion, surpassing the $4.3 billion open interest of Bitcoin options for the first time in history.

Open Interest (OI) Implications for Investors

Open Interest (OI) is an important market indicator that helps investors determine market price trends and market reactions. If the number of open positions decreases, it means that buyers and sellers are closing existing positions; on the contrary, if buyers and sellers prefer to open new positions, the number of open positions will increase. When the number of open interest contracts rises sharply, it generally reflects that the market is improving and the bulls are vigorous.

Ethereum overtakes Bitcoin for the first time in the options market

Deribit is one of the world’s largest crypto derivatives exchanges, holding more than 90% of the world’s cryptocurrency trading volume and open interest. As of August 2, 2022, Ethereum’s open interest options on the Deribit exchange were valued at $5.7 billion, 32% higher than Bitcoin’s $4.3 billion.

According to Deribit, the put/call ratio for ethereum options is now 0.26, while bitcoin’s option ratio is 0.5. If the put/call ratio is greater than 0.7 or greater than 1, it indicates that the market is bearish; if the ratio is below or close to 0.5, it indicates that the market is in a bullish trend. In other words, the options market situation for Ethereum and Bitcoin is generally positive for the time being.

Ethereum Merger Drives Ether OI Soaring

The much-anticipated Ethereum merger (The Merge) plan was originally scheduled to launch in June 2022, but due to technical problems, one of Ethereum’s developers, Tim Beiko, announced that the merger will start as soon as late September this year. This merger is mainly to merge the main network (POW) and the proof-of-stake (POS) system. It can be said to be the largest update of Ethereum since its launch. It has attracted the attention of investors and financial institutions. Prices will be more volatile.


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