Deribit Adds New ETH Contracts with $10,000 Strike Price; Ethereum Network in High Demand
Deribit allows its traders to bet on Ether’s moon target which is back on the move. Price mania has the second largest network so much in use that has become insanely costly for small users.
Up until this past weekend, Ethereum has been lagging behind Bitcoin, which has been having a face-melting rally for the past few months.
Ether has been trading just above $700 when in a wild move, the second-largest cryptocurrency ripped past $1,000 to hit the $1,170 level.
This price level was last seen in January 2018. During the March sell-off, the digital asset actually went under $100 and has since then surged 12x ETH -4.42% Ethereum / USD ETHUSD $ 1,273.05
-$56.27-4.42% Volume 39.97 b Change -$56.27 Open $1,273.05 Circulating 114.43 m Market Cap 145.68 b 8 h Decentralized Exchange (DEX), dYdX, Raises $10 Million Following A Record 2020 10 h American Cancer Society Debuts a Crypto-Only Fund; Sets A Goal of Raising $1 Million 10 h This DeFi Project Has Been 'Crushing it' Ever Since it Flew into 2021 .
This latest bout of volatility can be attributed to all the liquidations taking place.
As Jon Geenty of data source Coin Metrics pointed out, on the way up, once ETH broke $1k it didn't start to get more painful for short-sellers until past $1,100, and on the way back down, it got more and more painful for longs until additional bids showed up, which created a whipsaw effect on the way up and down.
Right after this nearly 36-months high, the digital asset gave a by the dip opportunity by falling to about $885. As of now, ETH is keeping above the $1,000 mark on the back of the strong volume, $8.30 billion.
But this is just the beginning. The crypto market has actually been calling for $10,000 per ETH by the time this bull cycle is over.
Now, crypto derivatives platform Deribit is giving people the opportunity to bet on this moon target.
The exchange announced the ETH options contracts with a 10k strike price with a Dec. 21 expiry. The strike price is the set price at which the contract can be bought or sold when exercised.
Because of all this price mania, the Ethereum network has been so much in use that it has become unusable for the smaller users.
ETH daily transaction count has reached near all-time highs going into the new year. The 7-day rolling average of ETH transaction count climbed to 1.20 million on January 3rd, just below the 1.24 million daily transactions recorded in January 2018.
This much activity on the blockchain led to the ETH transaction fees to increase by over 60% signaling high demand for it. Daily transaction fees on Ethereum reached an average of about $6.8 million per day, more than twice the amount of BTC daily fees.
For now, average fees on Ethereum have halved to $7.8 today from above $15 peak two days back.