The booming BTC options market has overshadowed the rising volumes of ETH options on Deribit.
Share this article
While BTC options open interest broke past the $1 billion threshold, the growth in ETH options has gone unnoticed. Ether options have been making new highs every week and are closing in on $100 million of outstanding contracts.
Ether Liquidity on the Move
The bullish case for ETH has made headlines throughout the week, and the rise of ETH derivatives is a new addition to the list.
Source: SkewDeribit’s options market has seen significant demand for ETH options over the last month. Volumes, too, are on the rise with several days in the previous week ending with over $10 million of volume.
Source: SkewThere is significant room for the options market to grow, however. BTC options open interest are about 0.77% of market cap, while the same metric is just 0.43% for ETH.
And unlike Bitcoin, the real ETH options boom may not happen on Deribit. Ethereum’s thriving DeFi movement is attempting to recreate a similar derivative infrastructure in a permissionless manner.
Eventually, this demand could shift to decentralized alternatives, but until there are better security and more accessible, more significant players will prefer to use platforms like Deribit.
Opyn, a DeFi options protocol, launched earlier this year and has seen smooth sailing with an exponential rise in activity. But considering the nascency of DeFi, it still isn’t completely safe.
Notional trading volume on Opyn, via DuneAnalyticsThe case of Hegic Options exemplifies the risk of using emerging DeFi primitives. Eager to launch, the project fell to both a bug and poor product design, all in a month.
Until DeFi is genuinely usable for non-technical users who value utility over ideals, Deribit is likely to be the home of ETH option liquidity.Â
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bakkt’s Bitcoin Options Volumes Stagnant, Competition Strong
Amid DeFi Security Concerns, Opyn May Have an Answer
Binance Tests Options Trading Days After Delisting FTX’s Leveraged Tok…
