The recent surge in open interest on Ethereum derivatives contracts has shattered the previous record, reaching a new all-time high of $23 billion. This figure has more than tripled since the beginning of this year, when the total stood at around $7 billion. The significant upward trajectory of Ethereum derivatives contracts has led one analyst to suggest that the market is “guaranteed for heavy fireworks.”
The data, sourced from CoinGlass, indicates that the value of open interest in ETH futures is now $23 billion. This suggests a significant growth in the number of positions being taken on the cryptocurrency, a trend that appears to correlate with an influx of fresh capital into the market.
CryptoQuant analyst Maartunn believes this could intensify volatility in the near term, as the increased capital inflow has the potential to amplify price movements, hence the prediction of “heavy fireworks.”
Nevertheless, the rise in Ethereum’s open interest comes at a time when its price performance has been lagging behind that of Bitcoin. Data from CryptoCompare reveals that while Bitcoin has surged by more than 156% over the past year, Ethereum has only climbed by 77%.
In a recent report from CryptoGlobe, it was noted that a substantial Ethereum whale, who had accumulated nearly 400,000 ETH when the cryptocurrency was valued at approximately $6 per token, has resumed selling. This whale, according to data from on-chain analysis firm Lookonchain, amassed a total of 398,889 ETH for roughly $2.4 million between January and March 2016. As a result of Ethereum’s meteoric rise over the past eight years, these tokens are now worth over $1.34 billion.
Ethereum is currently trading at $3,600 per token, contributing to a market capitalization of $433 billion. Lookonchain’s data reveals that this sizable Ethereum whale remained inactive for more than eight years, before resuming selling activities on November 7.
While Bitcoin hovers near a record high, Ethereum is still some distance from its all-time high of nearly $4,600, which it achieved in 2021. As reported by CryptoGlobe, the amount of Ethereum held on cryptocurrency exchanges plummeted by roughly $750 million last month, following substantial withdrawals of the second-largest cryptocurrency by market capitalization from these platforms.
This article was written in collaboration with Unsplash.
In conclusion, the Ethereum market is showing signs of increasing volatility, and with more capital pouring in, the stage is set for potentially dramatic price movements. As always, investors should remain aware of the risks and conduct thorough research before making any investment decisions.
