Ethereum derivatives market cools as prices extend decline

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Activity across Ethereum's derivatives markets has fallen below 2021 and 2022 levels, according to data from Glassnode.

According to the on-chain analytics firm, the average daily trade volume across Ethereum’s futures and options markets has fallen to just $14.3 billion, “which is around half the average volume over the last two years.”

Between 2021 and 2022, the average daily trade volume across these markets was $26.08 billion. With increased liquidity flush out, last week’s average daily trade volume was less than $10 billion, Glassnode found.In anticipation of the 12 April Shanghai Upgrade, Ethereum’s futures markets saw increased activity. According to data from, Ethereum futures open interest, tracked on a 30-day small moving average, between 1 January and 12 April had climbed by 10%.

When Shapella went live, futures open interest totaled $ 5.18 billion. However, as many viewed the upgrade as the last major speculative event for the asset, futures market participants began to exit their positions. This resulted in a steady decline in open interest. As of 4 September, this was $4.32 billion, dropping below its 1 January level.Ethereum’s options market, on the other hand, excelled, Glassnode found. According to the report, this market has seen over 256% uptick in daily trade volume since the beginning of the year. As of 4 September, this stood at $5.48 billion.

 

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