Ethereum’s permanent futures trading volume share reached a historic high of 67% in the past week. In other words, two-thirds of all crypto-permanent futures transactions were related to Ethereum.
This shows that crypto investors abnormally prefer high-risk investments, even amid a downward trend in the market, caused primarily by concerns over rising US inflation.
BTC-ETH is very close to open interest
GlassNode released its weekly report, “Derivatives-Driven Markets” on Wednesday. Bitcoin prices recently reached new all-time highs before revising, but explained that the crypto derivatives market has primarily driven market direction.
Despite the revision, GlassNode noted that market participants still consider this a bullish market.
As of Thursday morning UTC, the spot dominance gap between Bitcoin (59.42%) and Ethereum (13.62%) is about four times more. However, the beneficial advantage is much closer, with Bitcoin at 56.7% and Ethereum at 43.3%. This suggests that exploited investors have shown considerable interest in ETH.
This trend is even more pronounced in trading volumes. Ethereum’s permanent futures trading share reached an all-time high of 67%.
BTC vs ETH Permanent Futures Volume Domination (7 EMA). Source: GlassNode
GlassNode explained that these numbers highlight the high level of investors’ interest in the Altcoin sector, indicating that investors are willing to assume greater investment risks than they are now.
So will ETH prices rise even further and serve as a stepping stone to the “Altcoin season”? Ultimately, the key appears to lie in the attitudes and interest rate decisions of US Federal Reserve officials.
One of the main reasons for recent crypto price revisions is the uncertainty surrounding the Fed’s interest rate cuts as US inflation has been updated. If Fed Chairman Jerome Powell’s speech at Jackson Hole meeting on Friday shows a shift towards interest rate cuts, ETH is expected to rise much faster than BTC.
Post ETH Open Interest reached ATH, and the possibility of further profits first appeared in Beincrypto.
