The Ethereum (ETH) options market has witnessed a remarkable surge, with trading volumes on cryptocurrency derivatives exchanges hitting a historic peak. The total trading volume for ETH options has now soared past the $20 billion mark, indicating a significant milestone for the cryptocurrency.
Total Trading Volume for Ethereum Options Climbs Above $20 Billion
A closer look at the data reveals that the lion’s share of this volume, approximately $15 billion, is attributed to the bustling activity on Deribit, a leading derivatives exchange. The surge in trading volume occurred just before January ended, showcasing a robust start to the year for Ethereum options.
Deribit’s data further shows that the bulk of ETH options contracts in circulation are call options with a strike price of $2,500, set to expire on February 23. These contracts total over 74,548 in number, representing a nominal value near $172 million, reflecting a strong investor sentiment for a potential price increase.
Call options are a type of derivative that grants the holder the right, but not the obligation, to buy the underlying asset at a predetermined price before or on the expiration date. The aggregation of call options at the $2,500 price point suggests that investors are optimistic about ETH’s price prospects, despite a recent 1% dip in its value.
Additionally, the Ethereum network itself has experienced a significant uptick in transaction volume throughout January, with the monthly figure reaching $102.9 billion. This marks a 5% increase from December 2023 and represents a notable recovery from the lows experienced in the latter part of 2022 and early 2023.