quick take

Perpetual futures have traditionally attracted significant open interest and trading volume in both Bitcoin (BTC) and Ethereum (ETH). This trend confirms the widespread popularity of futures products in the cryptocurrency investment environment.

Historically, BTC has maintained a trading volume advantage over ETH in this market. However, this trend he experienced a notable reversal between July 2022 and January 2023. During this period, Ethereum’s volume dominance began to match Bitcoin’s volume dominance, eventually surpassing Bitcoin’s volume dominance.

This change is likely due to a combination of events such as the Ethereum merger in September and the subsequent collapse of Luna and FTX. These events caused a sharp drop in Bitcoin perpetual futures trading volume.

Nevertheless, after 2023, things started to change. Bitcoin reaffirms its leading position in the perpetual futures market, claiming a 65% dominance, with Ethereum accounting for the remaining 35%. Despite historical changes and market turmoil, the perpetual futures market continues to thrive, led by Bitcoin. The ETF announcement further accelerated Bitcoin’s continued dominance.

Persistent Volume Advantage: (Source: Glassnode)

Persistent Volume Advantage: (Source: Glassnode)

CryptoSlate was the first to see Bitcoin regain its dominance over Ethereum after the perpetual futures market.

By Jules

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