Ethereum futures trading volume reaches a 3-month high ahead of the Merge

Ethereum futures trading volume reaches a 3-month high ahead of the Merge
2 months ago
2 mins read

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.”

Ether futures trading volumes. Source: Twitter 

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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Dino Kurbegovic

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.