ETH vs. BTC: A change of scenery in the futures market has left BTC in second place

Bitcoin [BTC]The ever-dominant rise in the spot market (market capitalization) has left all rivals behind by a margin. Ethereum [ETH]the closest rival still has miles and miles to go before they can reach the king’s coin.

However, what would happen if we changed the battlefield to futures (market) instead? Here’s how things have changed this year when comparing BTC and ETH.

All in the name of Merge

The upcoming Ethereum Merge has created a positive hype around the network and the future it holds. The long-awaited merger would lead to a reduction in ETH issuance and bring a store of value to the asset.

The futures markets reached a market cap of $ 1 trillion following the hype as of new a report by Tom Rogers, head of research at ETC Group. By doing so, Ethereum Futures outperformed Bitcoin in terms of trading volume.

In fact, last month (August) was “the first time since records began that Ethereum futures trading volume exceeded Bitcoin, at $ 1.07 trillion for the entire month,” the report adds.

Plus, Glassnode’s latest insight shed light on the same development. Here, the analysis represented the absolute difference in the 3-month annualized rolling base between the two rivals.

(The annualized rolling basis of three-month futures is the annualized return (percentage return) obtained by buying a spot asset and simultaneously selling on it a futures contract that expires in three months. Due to supply and demand factors, the contracts futures often trade at a higher price than their spot counterpart.

This is used by traders to lock in profits which is the difference between spot and futures prices, which currently have played perfectly for the largest altcoin.

Source: Glassnode

ETH surpassed the trading volume of BTC in the futures market and the drove the attractiveness of spot hedging via short futures ET in retreat. This means that it showed upside potential as traders were betting bullish on it. (Backwardation occurs when futures prices are lower than the expected spot price and then rise to reach the higher spot price.)

Open interest – or the number of unregulated futures contracts – rose to over $ 9 billion this week from less than $ 4 billion in July, data shows. Additionally, ETH was dominated by bullish call options traders as the Put / Call (PCR) ratio settled at 0.25.

In fact, as of press time, the rate was trading at 0.24, which is once again a bullish sign.

Losing ground

Looking at BTC, the token remained in “contango” and the fundamentals suggested that the “bottom is in” as per Glassnode’s intuition. As the celebration of the Ethereum crowd has begun, Bitcoin supporters are becoming wary of BTC.

Bitcoin futures volume returned to $ 941 billion in August 2022, behind its closest competitor, Ethereum Futures.

Source: ITB

In fact, a stark contrast to the last two or three years since Bitcoin has always been the one that far precedes Ethereum.

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