Ethereum has been the revelation of this week as the digital asset has been engulfed in a bullish run since the beginning of the week and has recorded major tops. With the bullish run, investors flocked into the market, raising the demand for the digital asset among traders and investors.
With the demand for the second digital assets touching the sky, the Ethereum options market has also seen its volume reach a new record high. This latest feat is coming off the recent transition to the latest ETH 2.0, which was made possible after major stakers sent massive amounts of Ethereum to the contract address of ETH 2.0.
Ethereum hash rate presently at its all-time high
According to analysts at one of the largest crypto option market, Deribit, they said that the company had recorded a new all-time high record of $826 million in Ethereum Open Interest. Furthermore, the analysts also noted that their Christmas day expiry level is presently leading with over 669,000 ETH OI.
The analyst also mentioned that their present value for their puy/call ratio for this period of the strike is 1.19 Ethereum and the maximum pain for the expiry set at December 25 is $400.
With this in mind, investors in the Etheruem market needs to be on alert when the large options are about to expire because volatility is always present around times like these. Ethereums trading activity has been boosted by one major factor, which is the fundamentals surrounding the digital asset that is improving daily.
Taking an in-depth look into one of the on-chain fundamentals, one can notice that the hash rate of Ethereum is still lingering around its all-time high, according to data put forward by IntoTheBlock. This means that miners are doing all they can to mine the digital assets as the demand for it is currently way over the roof.
Traders want volatility to push the price of Ethereum higher
In the days after the switch to the new Ethereum 2.0 blockchain, mining will still have to continue on the previous blockchain. As long as mining continues on the previous blockchain, then the hash rate will not leave that level any time soon.
Analysts have tipped the network to be better than the first one regarding its algorithm as they have changed it from a proof of work consensus to a new proof of stake algorithm. With that, mining will be eliminated on the new network, but analysts have noted that both networks will eventually co-exist in the future.
Another thing that has helped sustain the hash rate has been the interest in the Ethereum ecosystem by all and sundry in the crypto market. The co-founder of Mythos Capital, Ryan Sean Adams, recently announced that about 1% of ETH’s total supply in the market is now locked in ETH bonds.
According to Adams, many people are gradually opening up to the Ethereum market, and it shows that people are starting to see Ethereum as money. Also, another sign of massive volatility has engulfed the Ethereum market as traders are backing the volatility to push the price of the crypto higher.
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