ETH bullish: Volume of Ethereum options at record level – but why is demand rising?
The volume of the market for Ethereum options has reached a record high, while the demand for ETH options has increased in recent weeks.
Analysts from Deribit, a market for crypto-currency options, commented:
„Our open interest for ETH options is a new ATH of $826 million! The expiration on Christmas Day leads with over 669k ETH OI. The ETH put/call ratio for this strike: 1.19 ETH Maximum pain for the expiration on 25 December is $400!“.
As a result, Ethereum could experience increased volatility Bitcoin Up towards 25 December as a major option expiry approaches.
Ethereum’s foundations are strengthened
The general increase in Ethereum’s trading activities is reflected in the improving fundamentals.
For example, the on-chain analysis company intotheblock reports that the hash rate of the Ethereum network has remained at an all-time high. This is an indication of the growing demand for ETH, as it shows that miners continue to devote their resources to the aggressive mining of ETH.
In the near future, mining on the Ethereum block chain network will continue despite the release of Eth2. As long as mining coexists on Ethereum, the increasing hash rate will remain a positive metric for ETH.
The hash rate of the Ethereum block chain network. Source: intotheblock
With the upgrade of the Eth2 network, Ethereum will switch from the Proof of Work (PoW) consensus algorithm to the Proof of Stake (PoS) algorithm, thereby eliminating mining. But in the foreseeable future the PoW chain will coexist with the beacon chain.
This is what Intotheblock’s analysts say:
„While the introduction of the Beacon Chain marks the beginning of the end for the #Ethereum miners, the hash rate of the network has remained close to its all-time highs. Even though the genesis of the Beacon Chain has been set in motion, Proof Of Work will continue to function in parallel“.
What happens next?
Analysts repeatedly stress the growing interest in various sub-sectors within the Ethereum ecosystem. The co-founder of Mythos Capital, Ryan Sean Adams, reports that 1% of the total ETh supply is now tied up in ETH bonds.
According to Adams, this shows that many people want to get in touch with the Ethereum economy, which is an indication that people see ETH as money. Adams:
„It is already 1% of the total ETH offer is included in ETH bonds. Not even a week after the launch. There is a clear demand for non-governmental Internet bonds. People want to expose themselves to the Ethereum economy. And these bonds are denominated in money. Because ETH is money.“
As trading activity increases, Eth2 provides additional scalability and the demand for ETH as money is growing noticeably, analysts say that Ethereum’s long-term growth path remains positive.