Ethereum (ETH) has broken a new record that shows how investors feel good about the future of the cryptocurrency.
This is definitely record week! It now appears that interest in Ethereum (ETH) futures has reached new all-time highs.
Market analysis firm Skew reported that Open Interest, or total value of contracts that have yet to be settled on Ethereum futures, surpassed the $ 1 billion mark.
New Ethereum Records!
For those who do not know the term, Open Interest shows the total number of pending contracts that market participants have at the end of the day. Therefore, it measures the total level of activity in the futures market.
In this sense, an increase in this metric means that new or fresh money flows into the market. Therefore, the new record represents a positive sign for Ethereum (ETH).
Also, the record is broken as Ethereum 2.0 advance continues. Thus, we can see how the general situation right now gives investors confidence about the long-term potential of ETH.
Image offered by Skew where we see the Open Interest of Ethereum (ETH)
So the fact that we see a new record on this metric implies that fresh money is flowing into the market and consequently investors feel good about where Ethereum is headed.
Growth represents 30% from June 20, going from $ 800 million to over $ 1.1 billion. Of which, crypto exchange OKEx currently holds the largest Open Interest at over $ 291 million. While Huobi and BitMEX rank second and third with $ 220 million and $ 216 million, respectively.
ETH stronger than ever?
In addition to this news, Ethereum recently reached an annual maximum of $ 330. Therefore, it is worth asking: What is driving ETH?
One of the main catalysts for Ethereum is the significant growth in activity that the DeFi market has had. In fact, protocols like Compound, Maker, and others have seen a substantial increase in users since mid-June.
Likewise, Ethereum 2.0 may represent a catalyst for the cryptocurrency in the long term. And, positive progress in ETH 2.0 could further boost sentiment around the cryptocurrency.
Consequently, these elements have created the ideal environment in the crypto market for Ethereum to reach new records like the one we are reporting today.
What will become of Ethereum in the future? At the moment, it seems to have a brilliant path but only time will tell.