Despite the numerous jitters seen throughout the crypto markets, and analysts proclaiming a new crypto winter, the confidence among investors seems to be returning. Futures trading has stabilized, with Ethereum (ETH) 90-day volume reaching an all-time high.
Bloomberg Intelligence’s senior commodity expert Mike McGlone took to Twitter on August 9 to voice his stance on the maturation process of Bitcoin (BTC) and ETH, indicating that the 90-day futures volume of ETH hit an all-time high.
“If CME-listed futures are a guide, the maturation process of Bitcoin and Ethereum is progressing well, with price implications. Bitcoin open interest is steadily trending upward, Ether futures’ 90-day volume is at an all-time high and the curve is tilting toward earning income due to the Merge.”
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He also added:
“Listed futures have been a maturation guide for crypto assets, and the Ethereum transition to proof-of-stake is a milestone that may be in early days of getting priced in, with adoption implications. The merge later this year is showing up in the CME- traded futures curve.”
Futures trading volume
According to data from Skew Analytics, the futures trading volume reached roughly $28 billion on August 8, with all-time high interest spreading across July and August, with the largest volume of $46 billion seen on July 18 and July 28.
Given that futures volumes point to the maturation of the underlying asset with the transition of ETH towards proof-of-stake (PoS) not yet fully priced in at the moment; however, if adopted successfully, McGlone considers fintech and infrastructure-building properties of ETH could be singled out more with adoption implications for the entire ecosystem.
With that being considered, ETH’s price rose over 47% in the last month ahead of September’s expected Merge, which refers to the deployment from Ethereum’s execution layer to the consensus layer; while the merge could be a reason why Ethereum is seeing such high futures trading.
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