Ethereum has been the talk of the crypto town all due to its upcoming ‘Merge’ – an upgrade that is certain to make the blockchain scalable. The crypto communities have been commenting on the possibilities of ETH flippening BTC. That could take a while, but the latest update is that ETH has overtaken BTC in the options market for the very first time.
As per the record, the net dollar value of Ether options contract opens on the largest crypto options exchange, Deribit, was $ 5.7 billion which is 32% higher than $ 4.3 billion locked in open Bitcoin options trades. Deribit the worlds largest crypto options exchange has captured the spike in open interest numbers for Ethereum, indicating that the second leading crypto will enter into a bullish momentum in parallel with Ethereum’s merge updates.
Open options trade or open interest refers to the options contracts ( call and put ) opened for trade but are not squared off by taking an offsetting position.
ETH’s ongoing merge has driven the traders to take bullish strides on the asset in the options market. The bullish sprawl on Eth is caused in the wake of hope that the merge will bring a 90% reduction in issuance that would dramatically increase the store of value and exchange of the asset.
BTC’s put call ratio is 0.5% while ETH’s ratio is 0.26% and the year end expiry of the put call is 50% lower at 0.12. Most importantly ETH’s open interest is created with an expiry of December 2022 at $3,000.
Bitcoin has been criticized for its inflated value and has been carrying this characteristic dent on it for quite some time. The final trial of the merge is scheduled during or before mid August, 2022. If the trial is successfully made through the main merge is estimated to take place in September, 2022. The price movement of ETH may further impact on deviates as the complete merge of ETH is on the anvil.
Ether’s spot trade has also risen after flippening the leading crypto Bitcoin. The trading volume of ETH recorded at 33.4% a little over Bitcoin volume at 32% and Solana taking the thor spot in the top crypto spot trading list.
According to Coinbase weekly, the crypto winter seems to fade as investors have shown renewed interest in crypto tokens like SOL, MATIC and AXAX.
As of now the market valuation of Ether is $ 199 billion which is half of Bitcoin’s market cap standing at $ 433 billion. To sum up, Ether and Bitcoin are going toe to toe. The notional open interest in Ether Futures is accounted for at $ 6 billion which is half of Bitcoin.
What is the Ethereum Merge?
Ethereum was originally designed as a Proof of Work consensus mechanism. The original network has been under duress for it not being a scalable blockchain due to its rigid architecture. The network will combine its original Proof of Work network with Proof of Stake blockchain called the Beacon blockchain.
Additional Read: Ethereum Merge Update
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