Over the weekend, Ether surpassed $445 USD per unit, while investor open interest in futures and options on Ethereum reached a new all-time high.
The data from skew, one of the most recognized and used data and analytics providers for Bitcoin y Ethereum, show that investor open interest in futures and options on Ethereum surpassed $1,72 billion over this weekend.
Source: Skew
The previous high for Ethereum futures and options was $1,45 billion, so the current increase reflected by Skew is about $280 million on average. With this, the open interest in Ethereum futures already adds up to approximately 300% growth so far in 2020. And contrary to what has been seen on previous occasions within the crypto ecosystem when an asset changes its value, the bullish movement of Ethereum , which took Ether from a position near $320 USD to $445 USD by the weekend, and about $430 USD as of the date of this publication, did not decrease or affect investors' open interest, but everything contrary. Despite the breakout of Ether's value and its new 2-year high, investors' open interest remains stable.
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DeFi Frenzy Fueled Ether Growth
The growing interest of users in decentralized finance protocols (DeFi) as Uniswap, and other similar platforms, is what is causing the current boost in the value of Ether (ETH), as well as the increase in the price of Gas, which during the previous week kept commission rates at a value between $6 and 7$USD; one of the highest and most expensive rates seen on the web since 2015.
Source: Skew
Etherscan shows that Uniswap, Teher y Forage They are the 3 most used protocols on the network and have consumed a large part of the Ethereum Gas, the latter being a decentralized application (dApps) labeled as a ponzi and fraudulent scheme by the SEC in the Philippines.
Moreover, Sainment, a provider of blockchain metrics and analysis tools, points out on its Twitter account that the need for users to buy ETH to pay commissions to network miners is also related to the increase in the value of the cryptocurrency.
Investors are optimistic about the future of Ethereum
To date, the value of Ethereum has already surpassed its 2-year high, and the cryptocurrency shows signs of continuing the upward trend. In that sense, several expert traders point out that ETH does not have a strong resistance, so it is quite likely that the cryptocurrency could reach $780 USD in the not-too-distant future.
Since July we are seeing how Ethereum began to exceed new price ranges, going from about $200 USD per unit to $250 USD by the end of July. Likewise, so far in August, ETH has recovered considerably, reaching a value of $430 USD at the close of this publication. This increase represents a 72% growth in the value of ETH, compared to the $250 USD the asset had on July 22.
Now, growing investor interest in Ethereum futures shows that the cryptocurrency has solid support to continue the bullish trend. For this reason, several investors are betting on Ethereum, considering that the cryptocurrency still has a lot of room to continue growing.
Continue reading: Opening of the new course “Quantitative Trading” Sept. 7.
