Traders are increasingly deploying two strategies that utilize futures ahead of the Ethereum Merge, leading to ether futures volumes surpassing that of bitcoin. By shauryamalwa
from the past 24 hours shows ether futures crossed over $35 billion in total volume compared to $32 billion on bitcoin futures, which usually see the highest volumes.The interest in ether futures likely arises from traders positioning themselves ahead of Ethereum’s Merge scheduled for later this month – a catalyst that has changed market dynamics for ether and caused price fluctuations.a significant part of that open interest could be from short trades, or positions that bet against price rises.
As per Kaiko analyst Conor Ryder, such short trades are growing in popularity as investors are either betting on an unsuccessful or delayed transition to proof of stake, or hedging their long spot ether positions ahead of The Merge. The latter reason is increasingly becoming a favored bet among investors, Ryder said, as some anticipate the possibility of an Ethereum fork and an eventual airdrop of a new ETHPOW token.
Future markets for ETHPOW have pegged prices of the potential token at $18, or just 1.5% of ether’s current value,The Merge shifts Ethereum from a proof-of-work mechanism to a proof-of-stake design, after which the network will rely on “stakers” to process transactions instead of miners. This would theoretically increase network speed and security, while considerably reducing the power requirements needed to run the current Ethereum blockchain.
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