Ether options have been trading for much less time compared to Bitcoin options, but the former has done an impressive job of catching up with its predecessor. Bitcoin had dominated as the leading crypto options asset in the space, with billions pouring into it. However, the tide had started to turn in Q3 2022 when a major update on the Ethereum merger sparked a surge in interest in Ether options.
Ether options outperform Bitcoin
Ether options debuted on the market in January 2020 and have enjoyed steady growth ever since. However, no matter how much Ether options have grown, bitcoin options have remained higher with open interest in cryptocurrencies pouring into the pioneering cryptocurrency. Then, in July 2022, the Ethereum developers made an announcement about upgrading the network to a proof-of-stake mechanism, and this would be a game-changer.
In July, interest in Ether options skyrocketed, leading to a meteoric rise. It hit a new all-time high of $8.1 billion, which was more than 50% higher than bitcoin at the time, with open interest at $5.4 billion. From there to today, Ether options remain in an impressive uptrend, continuing to outperform Bitcoin at every turn.
Public miners sell more BTC than they produced | Source: Arcane Research
The surge puts Ether options lagging behind at 100% recovery compared to bitcoin, which trails behind at 70%. It is the first time that open interest in Ethereum has grown more than that of bitcoin, and it’s all thanks to the much-anticipated Ethereum merger.
Is flippening imminent?
Flippening is a word that has come to mean that Ether outperforms Bitcoin in value. For the most part, this school of thought has stemmed from the fact that ETH’s price performance has outperformed BTC’s year over year. Therefore, some investors hope that the digital asset will trade bitcoin at some point to become more valuable.
There is no set timeline for when flippening is expected to happen. However, whenever Ether outperforms Bitcoin in any metric, the debates begin. The same has happened with ETH options growing more than BTC.
ETH falls to a low of $1,800 | Source: ETHUSD on TradingView.com
Currently, the price of BTC is still more than 10 times higher than that of ETH. So if there is going to be a sea change, ETH would have to grow 1,000% while the price of BTC remains unchanged. This is unlikely to happen given that the market actually moves with the price of BTC.
However, as the merger nears and what is known as a “triple halving” is imminent, ETH is likely to further close the gap between it and bitcoin. This event would see less supply of ETH in the market, giving it a genuinely deflationary model to compete with the limited supply of bitcoin.
Featured Image from MARK, Charts from Arcane Research and TradingView.com
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This post Flippen warning? Ether options overtake Bitcoin as the top cryptocurrency to trade
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