Open interest in Ethereum surpasses Bitcoin for the first time
The continuous Ethereum (ETH) network improvements have led some experts to hypothesise that the second-ranked cryptocurrency will surpass Bitcoin (BTC) one day. This prospect has been partially fulfilled as Ethereum flipped Bitcoin on the options market for the first time in history.
Specifically, as of August 1, the open interest of Deribit Ethereum puts worth $5.6 billion topped the genuine interest of Bitcoin options worth $4.3 billion across all exchanges, according to statistics from crypto analytical platform Glassnode.
At now, call options to dominate Ethereum options, with a Put to Call ratio of 0.26. The data shows that 1.2 billion and 1.8 billion call options expire on September 30 and 30, respectively.
Under Deribit, the top crypto options exchange regarding the trading volume and open positions, one Ethereum options contract corresponds to one ETH. Under the terms of a put option, purchasers have the right but not the responsibility to sell the underlying asset at a defined price by a specific date. Overall, purchasers of put options are impliedly gloomy, while traders of call options are optimistic.
The price of Ethereum increases before the Merge update
Ethereum’s lead over Bitcoin results from the asset’s continuous popularity increase, which seems to be fueled by the imminent Merge upgrade. Most investors are counting on the promotion that will reduce ETH supply and lend the asset a store of value quality.
Notably, the upgrade will combine Ethereum’s existing Proof-of-Work (PoW) blockchain with the Beacon Chain, a Proof-of-Stake (PoS) blockchain. The changeover is optimistic for Ethereum.
Investors and market professionals generally tend to bet on Ethereum’s future, particularly given the current high inflationary climate. Notably, Ethereum will likely become a deflationary currency after the Merge.
However, it is unclear how long it will take Ethereum to recover from the Merge update. Notably, it might take months for the market to feel the effects of such an incident.
Overall, Ethereum is still striving to maintain recent increases that have substantially impacted the market as a whole. Ethereum has rebounded from June, which was its second-worst month ever.