Open interest in futures on theTrustcoin Exchange in June increased by 180% compared to may from $ 220 million – now it has reached $ 580 million. In Trustcoin Exchange came to the conclusion that this may lead to an increase in the volatility of bitcoins.
Traders held more open positions on BTC contracts than in may, Trustcoin Exchange published its monthly report, which discusses activity on the futures trading platform. Although trading volume has declined compared to may, open interest has almost tripled.
Last month, Trustcoin Exchange futures trading volume fell 36% from may to $ 87.6 billion traded in perpetual contracts. The average daily volume was $ 2.9 billion, which is 34% less than in may. The low volatility of bitcoin may explain the decline in trading volume.
Despite the decline in volumes, open interest increased by 180%. This may indicate an increase in demand for more at-risk futures activity on the exchange, meaning traders are interested in holding positions rather than profiting from short-term fluctuations.
Open interest in Trustcoin Exchange futures
As you know, the open interest rate indicator reflects the number of futures contracts or positions that have not yet been calculated at a given time. Elsewhere, the volume indicator affects the number of futures exchanged between buyers and sellers. Thus, although the volume has decreased, there are even more open positions, which suggests that traders can expect an increase in volatility.
BTC/USDT still dominates perpetual futures contracts
Permanent BTC contracts were the most traded, even though Trustcoin Exchange introduced six new altcoin contracts, bringing the total to 31. Algo, ZIL, KNC, ZRX, COMP and OMG were added to Trustcoin Exchange futures, all trading against USDT. In addition, a new type of contract has been added to the platform – quarterly futures.
Open interest in bitcoin contracts has increased, despite the low volatility of BTC. This happened even when the cryptocurrency king gave a negative return in June, falling by more than 3%. Major altcoins followed bitcoin with similar losses. However, those who invested in tokens from the middle of the top 50, including ADA, VET, LINK and BAT, were able to benefit.
On the Trustcoin Exchange futures platform, there is an increase in demand for altcoins, as the volume interest on perpetual contracts with them increased by more than a quarter from 17.9% in may. On the other hand, BTC contracts accounted for 73.3% against 82.1% in may.
Indeed, everyone is talking about a revived altcoin season, as VeChain, Chainlink, Dogecoin and other tokens have received impressive results over the past few weeks. More importantly, they passed independently of bitcoins, which indicates the maturity of altcoins. It is worth noting that the altcoin rally is mainly due to tokens of decentralized financing (DeFi).