According to crypto-currency market data aggregator Glassnode, outstanding futures contracts reached a record high on the 11th. A new historic high was reached in March, with open interest on all exchanges approaching the $20 billion mark.
New capital is flowing into the derivatives markets as the number of outstanding #bitcoin futures contracts reaches a new high.
The open interest on the major exchanges is currently $20 billion.
Chart: https://t.co/ygoffzMSJW pic.twitter.com/BiJIpyTKDD
– glassnode (@glassnode) March 11, 2021
Options also reached record volumes in 2021, with Derebit now regularly trading for more than $1 billion a day.
According to Binance’s own CoinMarketCap, the three largest centralized derivatives exchanges – Binance, Huobi Global and ByBit – together account for more than $100 billion in daily trading volume. The funding alone is $57 billion. The following ten exchanges have traded over $65 billion in commodities in the past 24 hours.
However, despite the surge in volume, some decentralised derivatives markets do not appear to be keeping pace with their centralised counterparts.
Ethereum’s price spike appears to have slowed the growth of decentralized options, and the sophisticated implementation of smart contracts required to communicate with some Ethereum-based protocols has pushed gas prices above $1,000.
Similarly, record fees seem to have scared off traders of decentralized Ethereum futures, whose daily volume on dYdX dropped from tens of billions in January to about $100 million last week.
Daily volume on dYdX : Nomics
Recent liquidity issues with the popular Hegic protocol for intra-chain options trading are also impacting Etherum’s decentralized options markets.
On the eleventh. In March, Julian Koch, founder of Ribbon Finance, announced that the Stranglehold Protocol product had been temporarily suspended due to a lack of liquidity in the Hegic pools. Koch also pointed to the disruption in belt prices due to the ongoing upgrade of the DeFi Opyn option protocol.
On Discord, the Ribbon founder said that the team is currently working on integrating another DeFi options protocol, Charm Finance, as a new source of money to tackle.
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