Holly Flip- August 1, 2022 will go down in history as the fratricidal struggle between the two star quotes of the crypto market, Bitcoin (BTC) and his eternal dolphin, Ethereum (ETH). Indeed, today, and for the first time, the second “freaked out” the first on the emblematic options market. A metric as symbolic as it is strategic, which could draw the contours of the future destiny of two digital assets.
Bitcoin in full swing
The debate around the flip (this expected or feared moment according to your own convictions when Ethereum could hypothetically overtake Bitcoin in terms of marketcap) is particularly recurrent, even though the creation of Vitalik Buterin is preparing to undergo a major change in its structural model in a few weeks.
This move from proof-of-work to proof-of-stake, scheduled to run in September, is the subject of much speculation. On the one hand those for whom ” Everything will change, but nothing will change” facing a Bitcoin by nature impossible to compete. And, on the other hand, those who felt that Fusion (the small name of this event) will be likely to upset the natural order of things crypto. An upheaval that could ultimately have a heavy impact on the overall valuation of Ethereum, estimates even of its creator.
But, if it’s all just conjecture, there are several areas where Ethereum is on par with Bitcoin, if not head and shoulders above it. If we can quote mining revenuefor example, or even the number of transactions per day, it is today on the options market that another “reversal” has just taken place.
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Ethereum meets Bitcoin fine in the options market
the options market is passionate insofar as it embodies perhaps the best arena where supply and demand collide. A struggle, not only for the present, but also, and above all, for the future. Speculators execute there, in fact, bets on the future through dedicated financial vehicles (derivatives). These derivatives are based on the dynamics of underlying assets, all accompanied by projections over time. Each of these investments comes with an up or down bet (call and put). Very speculative (and must therefore be approached with caution, as the AMF reminds us), the options market is particularly taken from crypto investors and serves as a relevant thermometer on market dynamics in general.
However, today, and for the first time, options on Ethereum have exceeded their Bitcoin equivalent in volume.
In the marketplace deribitate (the largest in the sector) the volume of open options on Ethereum is thus currently 5.7 billion dollars, that’s 32% more than the $4.3 billion locked up in bitcoin options trades.
It should be added that the global trend concerns rather bets on a rise in the price of Ethereum, in favor of the next The Merge, an event feverishly awaited by the entire industry, well beyond the only the passionates of the asset.
The very near future should make it possible to determine whether this kind of overrun on technical points or particular metrics are the harbingers of paradigm shifts or ultimately only embody the feverishness of a market known for its perpetual necessity.
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