Tran Cong: The open interest rate of Ethereum Futures hit a new record high at $ 1 billion
The open interest rate of Ethereum Futures hit a new record high at $ 1 billion
The open interest rate or the total value of the unresolved contracts on Ethereum Future has surpassed the $ 1 billion mark. This is the highest level ever recorded, according to market analysis platform Skew.
This milestone comes as ETH price surges and the progress of Ethereum 2.0 gives investors confidence about the long-term potential of the crypto market's second largest decentralized protocol.
Future Contract is an area for veteran traders, and this form of trading seems to be sending all Ethereum fans a message that the bulls are still very strong.
Future Contract is an agreement between two parties to buy or sell a certain asset at a specified price at a predetermined time in the future. The buyer predicts the price of the asset (ETH in this case) is different from the price in the contract at the time of execution.
Contract issuers earn a fee (known as a premium) on the contracts they sell.
Open interest rates on Ethereum Futures have risen almost 30% since June 20, from under $ 800 million to nearly $ 1.1 billion at press time. The open interest rate is an important metric because it will be a "measure" of the hotness of the asset, the number of investors interested in Ethereum.
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OKEx cryptocurrency exchange currently maintains the largest open interest rate at over $ 290 million. The open interest rate of Huobi and BitMEX is in the range of over $ 200 million. Huobi recently announced its plans to launch ETH options trading in the third quarter.