Data shows that open interest in the Ethereum derivatives market has reached a new high (ATH) following a surge in trader positioning.
Ethereum’s public interest exceeded $30 billion
As explained by crypto community analyst Maartunn in a new post on X, open interest in Ethereum has been growing recently. “Open interest” here refers to an indicator that tracks the total amount of derivative locations associated with the currently open ETH in all centralized exchanges. Both long and short bets are included.
Registering the value of the indicator increases means that investors are opening new positions in the market. Generally, when this trend occurs, the total leverage of the sector increases, so prices can then become more volatile.
On the other hand, the metrics have been reduced suggests that the owner is closing his or her will position or being settled by the platform. This trend usually leads to assets operating in a more stable way due to leverage clearance.
Now, there is a chart shared by Martin, showing the trends in Ethereum’s open interest over the past few years.
Looks like the value of the metric has witnessed a sharp surge in recent weeks | Source: @JA_Maartun on X
As shown in the graph above, Ethereum’s open interest is growing rapidly with rallying over $4,400 in cryptocurrency prices. This suggests that this implementation has brought speculative interest to the assets. This is not uncommon, but the fact that the surge in open interest is keen is likely to be notable.
If the derivatives market heats up, mass liquidation events could continue as some highly leveraged traders inevitably lose their bets. These events are violent and tend to shake up the price of assets.
Coin volatility could continue this time, given the latest open profit growth has raised Ethereum’s position to a new record of over $30 billion.
As Coinglass data shows, there have actually been some important liquidation over the last 24 hours.
The breakdown of liquidations across the digital asset sector | Source: CoinGlass
As seen in the heat map above, Ethereum, with a $140 million liquidation, has become the top-ranked coin in the cryptocurrency market in terms of its strong closure over the past day.
Several other news reports that profits on the ETH network have slowed after peaking at $771 million a day in July, but backed up as a result of the latest rally as it pointed out by on-chain analytics company GlassNode on XPost.
The trend in the ETH Realized Profit over the past year | Source: Glassnode on X
Investor profits have returned to the $553 million per day mark.
ETH Price
At the time of writing, Ethereum traded around $4,460, up over 24% last week.
The price of the coin appears to have been marching up over the last few days | Source: ETHUSDT on TradingView
Dall-E, GlassNode.com, Coinglass.com featured images, charts on cordingView.com
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