The buzz surrounding the upcoming Ethereum “merger” — a technology upgrade poised to make the blockchain more efficient — has been cryptocurrency market move last. This has led to Ethereum bulls on cryptocurrency Twitter arrive ask “wen flippening?”—Look for a time in the future where Ether (ETH) overtakes Bitcoin (BTC) as the top coin by market capitalization.
Despite the fact that “slipping feet” can take a Long while that happens (Bitcoin loyalists swear it never will), the options market tells a different story. Due to the “bullish momentum” surrounding Ethereum consolidation, Ether open options “unmasked” Bitcoin open options for the first time on the popular exchange Deribit, CoinDesk reported in Monday.
Open interest options refer to the number of active derivatives contracts, or options that have been opened but not closed or expired. Open interest in Ether options on Deribit was $5.7 billion this morning, 32% higher than Bitcoin options at $4.3 billion.
Daniel Keller, co-founder of blockchain network Flux, said: “Ethereum’s proof-of-work consolidation story is pulling the entire market up right now. Luck, refers to the merger. “The options markets at this point are pure speculation that ETH 2.0 will be a premium and high risk, high reward play.”
Corey Miller, head of growth at dYdX, says the consolidation — and whether the upgrade goes smoothly — is part of that high risk.
“There is no doubt that Bitcoin’s market-driven argument about being an inflation hedge has been distorted over the past six months. Since BTC is not performing as well as many had hoped, some investors may [be] eyes on the next play,” Miller said Luck.
The next and final major test test for consolidation is expected to happen from the 6th to the 12th of August. If all goes well, the real merger is estimated to happen the week of September 19, as noted Ethereum developer Tim Beiko recently said. Until then, it is likely that the price will move more and have more impact on derivatives.
However, the Ether options market “flipping” and the hype around it may be just noise at the moment, but if it continues, the so-called “slippery” could be more real than you first thought. this.
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