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On August 8th, 2022, Glassnode released options open interest report. As per the reports, the Ethereum Options Open Interest reached their highest level of all time. Data Provided by the blockchain data aggregator shows that Ethereum options open interest reached 6.6 billion USD. However, at the same time, Bitcoin options open interest stayed only at around 4.8 billion USD.
Options open interest is a metric within the crypto market used to keep track of the direction of the market. The metric is popular and widely used among the traders. Primarily, it showcases the nore traders would come and join the market, it would act more towards certaining the possibility and direction of a market trend.
Many experts believe that the potential reason behind Ethereum attaining the new heights in options open interest metric is due to The Merge. The long awaited and significant upgrade on Ethereum network announced to launch by September 19th, 2022. Following the announcement, the activity on the network saw notable growth that reflected on its native asset ETH price.
For instance, BitFinex Market Analysts have stated about Ethereum options open interest:
“Speculators across derivatives markets appear to be scooping up call options on the rally in Ether prices to continue until the Merge but then potentially drop significantly thereafter. Options open interest for Ethereum has reached $6.6 billion, surpassing Bitcoin’s $4.8 billion, for the first time, according to Glassnode. While attempting to second guess what will actually happen next is of course the preserve of the trader, the Merge continues to captivate a growing audience, and has coincided with a rally in bitcoin and traditional stocks.”
The open interest represents the number of overall unsettled active contracts across the network. The metric witnesses a decline when traders within the market seem to close out and take exit from their positions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
