As Ethereum (ETH) prepares to enter a new era in its history next month, its options are exploding. On the Deribit stock exchange, we even noted an unprecedented downgrade of BTC options.
Will Ethereum outperform Bitcoin?
1uh August, the total amount of Ethereum (ETH) options exceeded bitcoin (BTC) options on Deribit for the first time. This, while the then-open options contracts on ETH peaked at $5.7 billion. While those on BTC posted $4.3 billion.
This historic performance is linked to the enthusiasm that has been arousing for several months the Ethereum project The Merge. This update provides for the abandonment of mining activity via the proof of work for a much more efficient and optimal technology, the Proof of Stake. The project has enormously stimulated the appetite of investors who are betting on its success. Which led to this strong rise in ETH options.
Once in place, ETH’s new technology is expected to lead to a 99% reduction in resources for Blockchain. It should also make transactions more dynamic and secure.
“The story of the switch from Ethereum proof-of-work to Ethereum proof-of-stake is pulling the whole market up right now. Options markets at this point are speculating that ETH 2.0 will be a superior product to BTC”commented Corey Miller, head of growth at crypto trading platform dYdX.
On Twitter, ETH proponents took advantage of this breakthrough to reignite the debate over whether ETH would be effective in overtaking BTC in terms of market capitalization. Some say they are convinced of the future occurrence of this event. On the side of BTC supporters, it is estimated that this will only happen ” never “.
You should know that in terms of valuation, on Monday, ETH was showing around 200 billion dollars. BTC was far ahead with $433 billion.
Despite its recent historic breakthrough in the markets, ETH continues to play second fiddle to BTC, especially in terms of daily trading volume in the futures markets.
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