Volumes and open interest in CME Ethereum Futures reached a record high this week, according to data from crypto analytics platform Skew.
What happened: Daily volume approached $ 240 million in one day, and total public interest exceeded $ 180 million. These were the highest levels since CME launched its Ethereum futures contracts on February 8th.
CME Ether futures had a record volume day this week pic.twitter.com/zchWxeA4O5
– skeef (@skewdotcom) 9 April 2021
An employee of the crypto-asset fund Decentral Park Capital, Lewis Harland, highlighted that the highest interest rate on CME ETH futures was a sign that institutional demand for the cryptocurrency is growing.
Harland also commented on Ethereum’s “massive supply shortage” and what it could possibly mean for the price of the asset.
Why it matters: In a graph showing the total value of all Ethereum inputs versus stock market balances, Harland noted that so far more than 1.5 million ETHs have been invested in the Beacon Chain. The Beacon Chain will introduce proof of the game to Ethereum as it transitions to ETH 2.0, and converting is a way for users to keep the network ‘secure’ to activate validator software.
In addition to the included Ethereum, 2.1 million ETH were withdrawn from the stock exchange, and the number continued to decline.
Finally, Harland noted that as of April 5, 10.7 million ETHs had been locked up in $ 22.6 billion in DeFi, and the current trend confirms that this number is likely to grow further.
If the supply of Ethereum continues to decline amid rising demand from small and institutional investors, the price of the asset could have a significant positive impact, according to proponents of the market.
Price action: Ethereum was trading at $ 2067 at the time of writing, up 1.72% in the last 24 hours. CoinMarketCap data posted the second-largest market capitalization cryptocurrency peaking at $ 2,151 earlier this week.
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