Tag: OPEN INTEREST

Bitcoin Perpetual Swaps Open Interest Hits the Highest Point Since Mid-April by Topping the $16B Mark

by Blockchain News

Bitcoin (BTC) has been experiencing an uptick in activities with perpetual swaps of open interest recording a 5-month high.

Data analytic firm IntoTheBlock explained:

“Bitcoin Perpetual Swaps Open Interest just broke the $16 billion mark, the highest since mid-April. An increase in open interest alongside price is considered a bullish signal.”

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The leading cryptocurrency recently saw more than 1 million addresses transact, which hadn’t been seen in 2 months.

BTC exchange withdrawals surge to a monthly high

According to crypto analytic firm Glassnode, the number of Bitcoin exchange withdrawals reached a one-month high of 1,816.030.

This trend is usually considered bullish because coins are usually transferred to cold storage and digital wallets, which signifies a holding culture.

Glassnode added:

“The dominant majority (98%) of Bitcoin volume spent on-chain are coins that were moved within the last month. Historically, such low old coin volume has correlated with generational tops, bottoms and early bull markets (disbelief rallies).”

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Miner revenue hit a 3-month high

Bitcoin miners’ revenue rose to a 3-month high of $5.9 million amid hashrate reaching a monthly high. 

This is a sigh of relief to BTC miners because they found themselves on the receiving end after Chinese authorities intensified the crypto mining crackdown in May. 

For instance, Bitcoin mining sites in Sichuan were disconnected in June, which hampered more than 90% of China’s crypto mining capacity. As a result, the hashrate was nosedived by 50% in July. The upward trajectory in Bitcoin’s hashrate and miner revenue was prompted by a shift from the East to the West, with the United States being the largest beneficiary. 

The hashrate is used to measure the processing power of the BTC network. It allows computers to process and solve problems that enable transactions to be approved and confirmed across the network.

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Ethereum Futures Open Interest Hit an ATH Amid $1B Being Locked in ETH Layer Two

by Blockchain News

Open interest in the Ethereum (ETH) network has been experiencing an uptick, as disclosed by market analyst Lark Davis.

He explained:

“Open interest for Ethereum futures has just hit a new all-time high! The market is mega bullish right now and going long in a serious way.”

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ETH’s perpetual swaps open interest topped $8 billion in August as the second-largest cryptocurrency witnessed more transactions days after the London Hardfork or EIP 1559 upgrade went live. 

This improvement made Ethereum deflationary, given that scarcity was introduced every time Ether was burnt after being used in transactions. As a result, inflationary tendencies were eliminated because a base fee was set for every transaction.

Total value locked in Ethereum layer two surges to $1 billion

According to L2BEAT, an analytic and research platform, Ethereum layer 2 (L2) is booming because $1 billion has been invested in scaling protocols.

 

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Ethereum L2 is a scaling solution created to mitigate congestion on the network. As a result, decentralized applications (dapps) can avoid network congestion by utilizing various technologies. 

The Ethereum 2.0 deposit contract, which went live in December 2020, is expected to boost scalability by offering a transition to a proof of stake (POS) consensus mechanism from the current proof of work (POW) framework. 

Meanwhile, decentralized finance (DeFi) has become a billion-dollar industry valued at more than $80 billion. This sector took the world by storm in 2020 after it witnessed a 14x growth.

DeFi is founded on blockchain-based smart contracts that fulfil certain financial functions based on the underlying code. 

The United States took the lion share in DeFi adoption, followed by Vietnam, Thailand, China, and the United Kingdom, according to a recent report from blockchain analytic firm Chainalysis.

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Crypto Open Interest and Trade Volume Reach Levels since March

by Blockchain News

Open interest and trade volume in the crypto market has increased based on the latest surge in prices, confirmed by Bybt.

The crypto analytic firm explained:

“The total open interest and total trading volume of crypto futures reached the level of March, indicating that the market is further active.”

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Bybt believes that the crypto market reflects activeness given that trading volume and open interest were on an upward trend. Open interest entails the dollar amount of contracts outstanding.

Recently, Ethereum’s perpetual swaps of open interest crossed the $8 billion mark for the first time since May. It, therefore, showed that Ethereum’s price and open interest were strongly correlated. 

ETH’s upward momentum was boosted after the London Hardfork, or EIP 1559 upgrade, went live on August 5.  

This improvement seeks to make the second-largest cryptocurrency deflationary, given that scarcity was introduced every time Ether was burnt after being used in transactions. Therefore, helping to eliminate inflationary tendencies that the network was accustomed to before. 

The burning of Ether has been reached an all-time high, given that a new burn record of 1,638 ETH in one hour was recently hit. 

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The value of the crypto market hit $2 trillion

According to journalist Colin Wu:

“The total market value of the cryptocurrency market has returned to 2 trillion U.S. dollars, currently about $2.11trillion, which is less than 20% from the peak of about $2.61trillion set on May 12th.”

After enduring months of consolidation, the crypto market experienced an uptick in price as low volatility had become the norm. This was partly caused by crypto mining being unwelcome on Chinese soil as miners exited the nation. 

Meanwhile, 76.8% of Bitcoin’s supply was held by strong hands or investors who hold BTC for long-term purposes other than speculation. 

Long-term holders have emerged to be significant players in the Bitcoin ecosystem. For instance, they set the accumulation ball rolling by purchasing more BTC, evidenced by their heavy buying during the recent dip of $29.5K. 

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Ethereum Whales’ Accumulation Mode Continues as Price Tops $3,200

by Blockchain News

Days after the London Hardfork went live, Ethereum (ETH) has been experiencing an uptick in prices as the second-largest cryptocurrency is set to become deflationary based on this upgrade. 

ETH was up by 16.52% in the last seven days to hit $3,228 during intraday trading, according to CoinMarketCap. 

Ethereum whales are not relenting in their accumulation quest because addresses with more than 100k coins now hold 43.7% of ETH supply, as acknowledged by Santiment. The on-chain metrics provider explained:

“Ethereum whale addresses aren’t stopping their accumulation as prices hover above $3,100. Three years ago to the day, addresses with 100k+ ETH owned 35.8%. Today, they own 7.9% more of the second market cap asset’s total supply. There are 1,338 of such addresses.”

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These statistics show that Ethereum whales’ accumulation has been on an upward trajectory because they owned 35.8% of ETH supply three years ago compared to the current 43.7%.

Is Ethereum eyeing the $4,000 level?

According to market analyst Ali Martinez:

“The IOMAP shows that Ethereum could run to $4,000 if ETH manages to close above $3,235. A rejection from this supply barrier could lead to a spike in selling pressure that pushes ETH to $2,700.”

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Martinez believes that a run to the $4,000 level is relatively open because Ethereum currently stands at the zone, which it has to break for more upward momentum to be attained.

On the other hand, Ethereum options open interest recently surged to a two-month high.

 

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ETH was recently boosted after the London Hardfork or EIP 1559 was implemented because a base fee for every transaction carried out will be set. As a result, giving all a fair opportunity. 

Furthermore, users who may wish to conduct their transactions faster than the standard provisions of the network can add a tip to validators to fast-track their transactions. Part of this tip is burnt, helping to improve the monetary policy of the Ethereum network as a whole and making it deflationary. 

With ETH options open interest topping $4 billion, whether this will boost Ethereum’s journey to the $4,000 level remains evident.

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Ethereum’s Perpetual Swaps Open Interest Tops $8B for the First Time Since May

by Blockchain News

Ethereum’s open interest continues to be correlated with its price, as acknowledged by IntoTheBlock.

Stack of ether coins or ethereum on gold background to illustrate blockchain

The data analytic firm explained:

“Ethereum’s perpetual swaps open interest crosses the $8 billion mark for the first time since May 18. Open Interest refers to the dollar amount of contracts outstanding. As the price of ETH has been climbing alongside OI is said to confirm an upward trend.”

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Therefore, Ethereum’s price and open interest are strongly correlated based on these statistics. 

ETH has been experiencing an uptick in price days after the London Hardfork or EIP 1559 upgrade went live, seeking to make the second-largest cryptocurrency deflationary.

This improvement will see a base fee set for every transaction carried out, giving all a fair opportunity on the ETH network.

Users who may wish to conduct their transactions faster than the standard provisions of the network will be able to add a tip to validators to fast-track their transactions. Part of this tip is burnt, helping to improve the monetary policy of the Ethereum network as a whole.

More than 18,000 ETH already burnt 

According to crypto data provider, CoinMetrics:

“Over 18K ETH has already been burned since Ethereum’s London hard fork went live on August 5th, approx. ~32% of the total ETH issued post EIP-1559.”

Furthermore, Ethereum’s trading volume surged past $10 billion from top-tier exchanges in the last 24 hours. 

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Ethereum (ETH) has experienced a significant adoption rate thanks to booming non-fungible token (NFT) and decentralised finance (DeFi) sectors.

As a result, ETH’s trading volume across different platforms has been on an upward trajectory. For instance, it accounted for nearly half of the trading volume on top exchanges. 

Meanwhile, Bloomberg analyst Mike McGlone recently stated that nothing could stop the process of Ethereum flipping Bitcoin.

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Ethereum’s Perpetual Swaps Open Interest Hit a Two-Month High

by Blockchain News

The latest surge in the crypto market has made Ethereum’s perpetual swaps open interest to increase, as disclosed by IntoTheBlock.

The data analytic firm explained:

“Ethereum’s Perpetual Swaps Open Interest just reached the highest number since May 19. As Open interest increases with the price of ETH, it points to more longs being opened. Currently, there are $6.16 billion in open positions.”

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It, therefore, shows that Ethereum price is positively correlated with open interest. 

Ethereum has been experiencing an uptick in different areas. For instance, its crowd sentiment on Twitter recently hit a two-month high after the second-largest cryptocurrency based on market capitalisation jumped above the $2,400 level. 

Furthermore, ETH 2.0 validators topped 200.000. Ethereum 2.0 was launched in December 2020 and sought to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

ETH hourly fees skyrocketed to $2.53 million following the sale of Stoner Cats

Meanwhile, the Ethereum network has been in high demand in the non-fungible token (NFT) sector.

For instance, Stoner Cats, an adult animated short series sold in NFTs, clogged the Ethereum network leading to the loss of more than 344 ETH in gas fees. Moreover, hourly fees surged to $2.53 million.

IntoTheBlock acknowledged:

“With the highly anticipated launch of Stoner Cats, over 10k NFTs were sold with a total value of 3,650 ETH. But what’s impressive was the high demand on the Ethereum blockchain, which resulted in over 344 ETH wasted in gas fees. Ethereum Hourly Fees skyrocketed to $2.53 million.”

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On July 27, a total of 10,420 Stoner Cats in the form of NFTs were put up for sale at 0.35 ETH each, and the entire supply was sold out in 35 minutes. 

NFTs have been playing a pivotal role in the Ethereum ecosystem. Recently, Coca-Cola revealed the launch of the first-ever NFT collectables to honour International Friendship Day, to be held on July 30. 

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Bitcoin futures open interest soars to new heights ahead of Coinbase listing

by Cointelegraph

Open interest in Bitcoin futures has surged to new record highs ahead of Coinbase’s April 14 direct listing on the Nasdaq.

Crypto market data aggregator Glassode states that Bitcoin open interest has exceeded $27 billion for the first time as Bitcoin pushed into new record highs above $63,000. The milestone suggests traders may be speculating on higher prices, although some may also be hedging against incoming volatility.

The lion’s share of trading activity is on Binance, where the $5.2 billion in positions accounts for almost 20% of all outstanding positions being held on the exchange. It’s followed by Bybit with $4.66 billion, OKEX with $3.75 billion, and then Huobi, FTX, and CME with roughly $3 billion each.

Despite the record open interest, Bitcoin futures volumes appear to have been declining over the past month, sagging from $117 billion as of March 15 to range between $50 billion and $75 billion during April, according to crypto derivatives data aggregator, Skew.

The waning volume may suggest traders have become increasingly cautious about opening new positions as the date for Coinbase’s listing has approached, with a significant share of open interest likely representing positions that have been opened during previous weeks and months.

Of the $75 billion worth of BTC futures that changed hands over the past 24 hours, Binance makes up more than one-third of the volume with $26.9 billion, followed by Huobi with $14.5 billion, OKEx with $12.7 billion, and Bybit with $10.6 billion.

By contrast, open interest in Bitcoin options has declined since a record $6 billion worth of contracts expired at the end of March. Options volumes have increased during April, with the data suggesting many traders have been hedging their positions as billions were mobilized to protect against a crash down to $40,000 last week.

Bitcoin is not the only market that derivatives traders are speculating on, with open interest in Ethereum futures also spiking to record highs above $8 billion as volumes increased over recent weeks.

Ethereum’s options markets have also seen an increase in activity, with open interest pushing into 30-day highs near $3.2 billion. Ether options volumes jumped 90% overnight, surging from $200 million to $380 million.

However, many Ethereum traders appear to be looking beyond Coinbase’s listing this week, with analyst Cantering Clark noting significant volume targeting prices above $3,200 for the end of June earlier this month.