Open Interest for Ethereum Futures Soars to All-Time High of $2.21 Billion
Ethereum (ETH) is cementing its status as one of the leading cryptocurrencies after smashing the $700 price ceiling it last hit in May 2018. ETH has been making merry in 2020 after the much-anticipated Ethereum 2.0 went live and set the foundation for a transition to the proof-of-stake consensus mechanism from the current proof-of-work.
Bybt, an aggregated derivative exchange, has provided a more in-depth analysis about open interest on Ethereum Futures hitting record highs. The data provider affirmed:
“ETH Futures Open Interest breaks ATH $2.21 Billion.”
This record-breaking move is being witnessed at the same time when ETH’s price has zoomed off to levels not seen in 31 months. Santiment, an on-chain metrics provider, noted that this price rally has not been observed since May 19, 2018. Furthermore, ETH supply on exchanges has diminished to hit a 1.5-year low.
At the time of writing, ETH price is trading at $734, and one factor attributed to this bull run is the high number of Ethereum staked before ETH 2.0 was launched on Dec 01. Even though Ethereum 2.0 is already live, data from crypto market provider Dune Analytics shows that more than 1.4 million ETH has been locked up, and the number continues to grow by the day.
It is, therefore, not surprising that the open interest for ETH futures has reached an ATH of $2.21 billion because investors are continuously keeping a keen eye on the second cryptocurrency based on market capitalization.
Ethereum is expected to continue making headlines because it is touted to be a beneficiary of the trickle-down effects of Bitcoin's impressive bullish run. The leading cryptocurrency has been the talk of the town after it continues to surge to levels never seen before. Over the Christmas weekend, it shuttered the $28,000 mark as huge institutional investments from corporate giants like Square and MicroStrategy have been fueling its price surge.
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