Monday 23 November 2020 11:00 am | Updated: Monday 23 November 2020 5:10 pm

What the Future holds

By: Crypto AM Daily in association with BEQUANT

Expiration this Friday

Given the close proximity to an all time high, the temptation to look for higher levels is all too appealing. However, given the looming derivatives expiries at the end of this week on Friday may mean that some of the capital may look for opportunities elsewhere. At the time of writing the futures term structure and the open interest (OI) profile showed little to indicate that risk on sentiment is abating.

Similarly, Ethereum continued its strong run and is trading up 47% month-to-date (MTD) and up close to 350% year-to-date (YTD). As a guide, 292,320 ETH has been staked in the Eth2 deposit contract, just over 50% and 231,968 more ETH is needed to launch Eth2.

DeFi Upside

The recent upside by Ethereum is yet to translate into lower interest in locked Ethereum for liquidity on DEXes, although Sushiswap did see a large outflow of about 400kk of liquidity from ETH/stablecoin pairs, which was almost 35% of all AMM liquidity.

As it stands over $14bln is locked across the DeFi ecosystem and the hunt for yield appears undeterred by the rally across large caps such as Bitcoin and Ethereum. It is worth bearing in mind that alongside the better bid spot, the implied vol has also edged higher and is trading significantly richer than the realised vol.

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