Golden Finance reports that the cryptocurrency market is in a state of flux, and the Ethereum derivatives sector has recently shown a rapid development trend. Data shows that the trading volume of Ethereum derivatives has increased significantly by 38% in the past 24 hours. Its performance is particularly outstanding and it has successfully surpassed the trading volume of Bitcoin derivatives, becoming the focus of market attention.
According to data from the well-known crypto data platform Coinglass, the trading volume of Ethereum derivatives soared to over 110 billion US dollars in the past day, while the trading volume of Bitcoin derivatives during the same period was 84.72 billion US dollars. The significant increase in the trading volume of Ethereum derivatives is mainly attributed to two key factors. On the one hand, spot Ethereum ETFs have witnessed a strong inflow of funds. Recently, the market’s attention to Ethereum spot ETFs has been continuously rising. Many investors are optimistic about the long-term development prospects of Ethereum and have been laying out Ethereum assets through ETF channels. This trend has greatly driven the market’s demand for Ethereum-related derivatives. For instance, some traditional financial institutions and large investment funds, influenced positively by Ethereum in terms of blockchain technology innovation and the expansion of smart contract applications, have indirectly participated in the Ethereum market through spot Ethereum ETFs and further ventured into derivatives trading to achieve diversified asset allocation and risk management.
On the other hand, the bullish sentiment driven by the reactivation of the DeFi market has also injected strong impetus into the growth of Ethereum derivatives trading volume. With the continuous development and application of blockchain technology, the DeFi ecosystem is becoming increasingly prosperous. Ethereum, as the core underlying platform in the DeFi field, has benefited significantly. Numerous DeFi projects are built on the Ethereum network, covering multiple fields such as lending, trading, and insurance. Recently, the total locked value of the DeFi market has increased by 32% compared to April, reaching 118.8 billion US dollars. This figure directly reflects the recovery of market participants’ confidence in DeFi projects and the increase in capital investment. Against the backdrop of an active DeFi market, investors’ demand and expectations for Ethereum are constantly rising, and they are thus actively participating in Ethereum derivatives trading, hoping to gain profits from price fluctuations.
From the perspective of market drivers, the US spot ETH ETF has seen a net inflow of 890 million US dollars for 16 consecutive days. This continuous capital injection not only brings sufficient liquidity to the Ethereum market but also stabilizes market confidence to a certain extent, attracting more investors to pay attention to and participate in Ethereum-related investments. Meanwhile, the SEC chair recently expressed support for the self-custody rights of digital assets. This positive signal from the regulatory level has further stimulated market vitality and created favorable conditions for the development of the Ethereum derivatives market.
From a technical analysis perspective, the current price trend of Ethereum is closely watched, with $2,800 emerging as a key support level. If the staked ETF is approved, the market generally expects that this will bring a new round of capital inflow and market heat to Ethereum, pushing the price of Ethereum to test the range of $5,500 to $6,700 by the end of the year. From a long-term perspective, the deflationary mechanism of Ethereum itself and the continuous development of Layer2 technology constitute a strong support for its fundamentals. The deflationary mechanism leads to a gradual decrease in the circulating supply of Ethereum. In the case of stable or increasing market demand, it will have a positive impact on the price. The continuous improvement of Layer2 technology can effectively enhance the transaction processing capacity of the Ethereum network, reduce transaction costs, further strengthen Ethereum’s competitiveness and appeal in the blockchain field, and lay a solid foundation for the long-term prosperity of its derivatives market.
The trading volume of Ethereum derivatives has surpassed that of Bitcoin this time, reflecting the subtle changes in the structure of the cryptocurrency market and the continuous expansion of Ethereum’s influence in the market. For investors, it is necessary to closely monitor market dynamics, reasonably seize investment opportunities, and at the same time fully recognize the high risk of the cryptocurrency market and take good risk management measures. For the entire cryptocurrency industry, the development of the Ethereum derivatives market will prompt market participants to continuously innovate products and services, and drive the industry towards a more mature and diversified direction. Subsequently, as the market environment changes and relevant policies are advanced, where the Ethereum derivatives market will head is worth continuous attention from all market participants.
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