The markets of derivatives of Bitcoin have been flocked with traders. They are racing to take their chances on the derivatives with the open interest of BTC futures set to reach the first-time record of $20B.
In the meantime, the prices of Bitcoin are once again speeding towards another all-time high owing to the big volume of the inflowing money into the markets of derivatives on BTC.
Impending Record High For Bitcoin
The market data on cryptocurrency made by the aggregator of Glassnode has reported that the extraordinary futures contracts have been pushed towards another record high on 11th March. In addition, the Bitcoin open interest in all the exchanges is exponentially rushing towards $20 billion.
The options are also spiking in order to witness the record volumes of 2021. The Deribit are regularly hosting a daily trade that is worth more than $1B. According to the reports of CoinMarketCap, the 3 biggest centralized exchanges of derivatives are Binance, ByBit, and Huobi Global. They represent over $100 billion in total daily trade.
Even with the rising volumes, a few of the decentralized exchanges of derivatives are now seen to be facing the issue of attracting momentum for their centralized equivalents.
The extremely high fees of Ethereum are slowly decreasing the development of decentralized options. This is because the complex smart contracts implementations that are needed to engage with a few of the ETH protocols have led to gas prices above $1,000.
On 11th March Julian Koh, founder of Ribbon Finance made the announcement of temporarily disabling the protocol of Strangle products because of the lack of liquidity in the pools of Hegic. He further stated that the disruptions in the price feed of Ribbon have resulted from the continuing upgrades on Opyn, the options protocol of DeFi.
