The volume of options on Ethereum rose to a maximum in 10 months, according to data The block. In March, this figure exceeded $14.2 billion, the last time it rose above this mark in May 2022 (then it reached $16 billion), writes RBC Crypto.
The increased interest is due, in part, to the expectation of an Ethereum update called Shapella, which is scheduled for April 12th. It will enable blockchain validators to withdraw funds previously blocked on the web.
At the moment, by data Ethereum.org, the blockchain of the leading altcoin, is supported by more than 558 thousand validators, 17.8 million ETH ($32 billion) is blocked on the Network. The ability to withdraw these funds can lead to both increased liquidity in the market (if participants start withdrawing assets) and an increase in the number of validators and their contributions (people can be attracted by the ability to easily withdraw funds).
While waiting for Shapella, traders are actively betting on the future price of Ethereum. In addition to the growth in option volumes on crypto exchanges, the publication also notes a rise in open interest in Ethereum options on the CME (Chicago Mercantile Exchange group) to a record high of $143 million this month. At the same time, the volume of completed trades in Ethereum options lagged behind, signaling that that traders are accumulating contracts in anticipation of an update.
Trading volume is the total number of all contracts traded in a given period. Open Interest (OI) is the number of active contracts that have been entered into but not yet settled. By these parameters, traders determine the interest in the underlying assets in the market, whether the funds are directed to the asset by market participants or, conversely, withdrawn from it.
The Ethereum rate before an important update does not show a strong growth or fall. The price of altcoin repeats the movement of the first cryptocurrency. Having risen to a local maximum at the level of $1.82 thousand on March 29, the ETH rate then decreased. At 13:00 on March 31, the asset is trading at $1.79 thousand.
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