Last week, ethereum options volume exceeded bitcoin’s for the first time on the digital currency derivatives swap Deribit. Additionally, the trading platform latterly introduced a $50k ETH strike for March 2022 and explained the $50k call is “winning immediate buy traction.”
Ethereum Options Volume Grows Exponentially, $50K Strike Flexes Muscle
When it gets to bitcoin (BTC) derivatives, the trading platform Deribit catches the lion’s share of today’s options volume. The cryptocurrency trade also features bitcoin prospects and ethereum options as well. While the first week of May, Deribit’s ethereum (ETH) options excelled bitcoin (BTC) options for the first time.
Skew analytics data shows while BTC had $880 million on May 3, ETH options saw $1.3 billion. The volume continued that week as the analytics company Skew tweeted about the staggering ETH options volume last Thursday.
“Ether markets seeing record activity this week across spot, futures and options,” the analytics firm tweeted. “Options traders’ anticipations of ether volatility relative to bitcoin are rising,” Skew added the next day.
On May 10, the crypto derivatives market Deribit said: “ETH Option continues now governing BTC. And not just Fast money.” During the last six months, Deribit has achieved the largest number of BTC and ETH options in words of volume and open interest.
“Action across maturities, with Deribit posting the ETH Mar22 50k Call (really!), winning immediate buy traction. In general, Calls rolled up to keep/add exposure; decent 2-way Put action, but few reducing upsides,” Deribit added.
Institutional Investors Fueling Ethereum Markets, $5K Strikes See Build-Up
Since ethereum has latterly obtained all-time price highs on spot markets, traders and venturers have been directed on the top two leading crypto assets’ dominance levels.
The leading digital asset bitcoin (BTC) has 42.1% dominance in words of market cap as opposed to the entire crypto-economy ($2.29T). Ethereum on the other hand owns a dominance level of approximately 19.8% at the time of composition.
“The second-largest crypto asset by market capitalization has been running in a sharp upwards trajectory since its latest hard fork as it proceeds to prove its use-case,” Simon Peters, the crypto asset investigator at the multi-asset financing platform Etoro wrote to Bitcoin.com News.
“BTC term structure is in contango. We would assume this from relative RV movement. But BTC IV is nudging higher in sympathy with ETH, on low volumes. Either expectation is of BTC move, or perhaps a shift of MM collateral to the action,” the exchange noted.
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