Bitcoin Futures open interest has recently managed to touch its ATH, and the speculations made on BTC in the derivatives market are advancing towards $20 billion for the first time ever. With Bitcoin dashing toward ATHs again, a huge volume of capital is flocking in the BTC derivatives market.
Traders Speculate On Bitcoin Futures Touching $20 Billion
Glassnode, a cryptos market data gatherer recently revealed that on March 11, the remaining futures contracts pushed into new ATH with open interests over crypto exchanges moving toward $20 billion.
More capital is flowing into the derivatives markets, as the amount of outstanding #Bitcoin futures contracts reaches another ATH.
Open interest across major exchanges is currently sitting at the verge of the $20B mark.
— glassnode (@glassnode) March 11, 2021
In 2021, record volumes were witnessed in options and the BTC futures and options exchange Deribit is presently hosting daily trades worth over $1 billion.
According to the recent data revelations, Binance, ByBit, and Huobi Global, the top three centralized derivatives exchanges are representing over $100 billion in combined daily trade.
In the past 24 hours, the further 10 popular CD exchanges have reported trades worth over $65 billion.
On the other hand, some of the decentralized derivatives exchanges seem to be grappling to draw the momentum of their centralized equivalents.
The sky-high charges of Ethereum seem to have decelerated the growth of the decentralized options. The convoluted smart contract executions required to interrelate with some protocols based on Ethereum resulted in gas costs of over $1,000.
Liquidity Issues Impacting Decentralized Option Markets of Ethereum
Julian Koh, the Founder of Ribbon Finance made an announcement on March 11 regarding the temporary disabling of the ’Strangle’ product of the protocol. The reason behind this was the lack of liquidity in the Hegic pools.
In addition to this, Julian Koh also noted the disturbance in the price feed of Ribbon which was a result of ongoing updates to DeFi options protocol Opyn.
The Founder of Ribbon also noted on Discord that the crew is presently working on amalgamating with Charm Finance, a fellow DeFi options protocol. Koh referred to it as:
“a new liquidity source to solve the liquidity issue.”