With BTC returning to steady highs again, large amounts of money are pouring into the Bitcoin derivative markets.
According to data aggregator at cryptocurrency market Glassnode, the pending futures contracts were moved to new permanent positions on March 11th, with open interest on exchanges approaching $ 20 billion.
The alternatives have also grown to record record volumes in 2021, with Derebit now regularly trading more than $ 1 billion in daily trade.
According to data from CoinMarketCap owned by Binance, the total daily turnover of the three largest central exchanges – Binance, Huobi Global and ByBit – exceeds $ 100 billion. Binance alone is worth $ 57 billion. The next 10 top-ranked exchanges have traded in excess of $ 65 billion in the past 24 hours.
Despite the increased volumes, it appears that some decentralized derivative exchanges are struggling to gain the attention of their centralized counterparts.
The high Ethereum fee appears to have slowed the growth of decentralized options with the implementation of the complex smart contracts required to interact with some Ethereum-based protocols, causing gas prices to exceed $ 1,000.
Likewise, standard fees appear to discourage traders from etheric decentralized futures, as daily dYdX volumes fell from tens of billions in January to nearly $ 100 million last week.
Daily Volume in dYdX: My Name
The recent liquidity problems of the options trading protocol on the popular Hegic Chain also affect the decentralized options markets in Etherum.
On March 11th, Julian Koch, founder of Ribbon Finance, announced that the “Strangle” protocol product had been temporarily suspended due to “lack of liquidity at Hegic pools”. Koch also noted disruptions to the flow of tape rates as a result of ongoing updates to the Opyn DeFi option protocol.
At Discord, the founder of Ribbon noted that the team is currently working on integrating its alternative DeFi protocol, Charm Finance, as “a new source of liquidity to address the liquidity problem.”