ETH Gains Momentum as Open Interest Rises: Insights from Bybit x Block Scholes

Over the past week, Ethereum (ETH) has done better than Bitcoin (BTC), which shows that the altcoin market as a whole is optimistic. A study from Bybit, the second-largest cryptocurrency exchange in the world by trade volume, and Block Scholes, a London-based analytics company, shows that Ethereum’s rise in open interest for swaps has been much faster than Bitcoin’s in a number of important ways.

Always-On Swaps and Open Interest Trends

The study shows that open interest in Ethereum permanent swaps has been steadily rising. This is in contrast to Bitcoin, which has been slowing down since it fell from a record high of $99,531. Bitcoin went down 1.6% this week, while Ethereum went up 8%.

At the same time that this change in the market happened, news came out that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler would be leaving his job in January 2025. This made crypto buyers hopeful. With the expected change in leadership, regulations will likely become friendlier toward digital assets.

More gains in the crypto market

During this time, other cryptocurrencies like XRP, Cardano (ADA), Stellar (XLM), and Polkadot (DOT) also saw price increases. “This trend reflects investor optimism,” the study says. “Many expect a change in the SEC’s leadership by January 25, 2025.”

On November 28, Ethereum hit a weekly high of $3,682, while Bitcoin fell to $90,911. Because the market has become less volatile, BTC’s money volatility structure has been limited, and short-term options have fallen below 60%.

Options markets with different trends

Open interest in both calls and puts on the Bitcoin options market hasn’t changed much, which shows that demand is low. On the other hand, there have been a lot more call options on Ethereum’s options market, which has increased trade rates and made ETH the market winner.

When the market is going up, Ethereum does better than Bitcoin.

As a result of changes in regulations and investment mood, the study points out a turning point for cryptocurrency. Ethereum’s strong performance and rising open interest show that it is becoming more popular in a market that is changing quickly.

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