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Ethereum Open Interest Nears All-Time Highs Ahead Of Merge

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Data shows the Ethereum open interest has surged up to near all-time high values as the ETH 2.0 merge comes closer.

Ethereum Open Interest Has Sharply Risen Up Recently

As per the latest weekly report from Arcane Research, the ETH open interest in futures and perps has surged up to 4.2 million ETH in recent days.

The “open interest” is an indicator that measures the total amount of Ethereum futures and perps contracts currently open in the market (denominated in ETH). The metric includes both shorts and longs.

When the value of this indicator is high, it means a large number of contracts are currently open in the market. Such values usually lead to higher volatility in the price of the crypto.

On the other hand, low values of the metric suggest many contracts have been closed on the market. This can result in lesser volatility for the coin.

Now, here is a chart that shows the trend in the Ethereum futures and perps open interest over the past year:

The value of the metric seems to have moved up recently | Source: Arcane Research's The Weekly Update - Week 31, 2022

As you can see in the above graph, the Ethereum open interest has observed uptrend in the past week and is now near the all-time high value.

The current value is the 2nd highest ever recorded for the indicator, just below the 4.21 million ATH set back on July 14th of this year.

While the massive hedging amid arbitrage opportunities like Celsius’ bankruptcy was behind the last peak, the report notes that the current rise is likely caused by trading strategies ahead of the 2.0 merge.

The ETH futures market is also observing massive discounts at the moment. Normally, high open interest and negative basis like right now lend for the possibility of a short squeeze (an event where short liquidations cascade together due to a sudden swing in price).

But Arcane Research points out that the latest increase in leverage is likely from more conservative risk management, which would mean that any possible short squeeze that might take place currently won’t be too significant.

ETH Price

At the time of writing, Ethereum’s price floats around $1.7k, down 1% in the past week. Over the last month, the crypto has gained 40% in value.

The below chart shows the trend in the price of the coin over the past five days.

Ethereum Price Chart

Looks like the value of the crypto has come down during the last two days | Source: ETHUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research

 

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NFT Marketplace OpenSea Relists Azuki NFTs After Delisting

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Opensea Breach, Is Users' Data Trapped By Scammers?
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  • OpenSea had to cope with an email data breach and the delisting of BAYC NFTs in June.
  • Azuki’s floor price hardly budged from the time of the delisting fiasco.

Many of the Azuki NFTs that were delisted yesterday on the leading NFT marketplace OpenSea have been reinstated. After the marketplace discovered an error in their Trust & Safety flagging mechanism.

The team stated:

“Hey all, rough morning. There was an error in our Trust & Safety flagging system and a number of Azuki NFTs were briefly delisted. We DID work fast to resolve the issue + all impacted items have been relisted. Also, we’re in direct contact with the @AzukiOfficial team.”

When word spread that the Azuki NFTs had been delisted, the blue-chip NFT collection turned to Twitter to address the issue, stating that they had contacted OpenSea about the delisting emails that had been issued to Azuki holders and were waiting to hear back.

Not the First Time

The official announcement from OpenSea was released about two hours after the first issue was discovered. The NFT marketplace mentioned they did work rapidly to remedy the problem and they have been in direct communication with the Azuki team.

OpenSea further tweeted:

“We’re so sorry for any inconvenience and confusion this may have caused.” 

OpenSea has removed NFTs from a blue chip collection before. Recently, OpenSea had to cope with an email data breach and the delisting of Bored Ape Yacht Club (BAYC) NFTs in June. The situation was fixed in the same amount of time as Azuki’s.

Fortunately for Azuki’s, the floor price hardly budged from the time of the delisting fiasco on Friday and now, when it stands at 9.97 ETH as per recent data.

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Circle Partners With Truefi To Boost Usdc Adoption

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Firm Behind Usdc Stablecoin ‘Circle’ Announces Launch Of Euroc Stablecoin
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