{"id":189015,"date":"2021-02-25T22:35:00","date_gmt":"2021-02-25T19:35:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/580m-open-interest-makes-cardano-ada-the-third-largest-futures-market\/"},"modified":"2021-02-25T22:35:00","modified_gmt":"2021-02-25T19:35:00","slug":"580m-open-interest-makes-cardano-ada-the-third-largest-futures-market","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/580m-open-interest-makes-cardano-ada-the-third-largest-futures-market\/","title":{"rendered":"# $580M open interest makes Cardano (ADA) the third largest futures market"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2409292cd60\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2409292cd60\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/580m-open-interest-makes-cardano-ada-the-third-largest-futures-market\/#ADA_trading_volume_and_on-chain_metrics_strengthen\" >ADA trading volume and on-chain metrics strengthen<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># $580M open interest makes Cardano (ADA) the third largest futures market <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>On Feb. 3, Cardano\u00a0conducted a hard fork and successfully integrated the Mary upgrade to the testnet, transforming\u00a0the blockchain into a multiasset network similar to Ethereum.<\/p>\n<p>This event seems to be one of the reasons for the impressive 475% year-to-date rally of\u00a0ADA, and the altcoin is now causing unexpected ripples in the derivatives markets. <\/p>\n<p>Since the end of December 2020, ADA&#8217;s $81-million aggregate futures open interest hiked to the current $580 million, becoming the third-largest derivatives market, behind Bitcoin (BTC) and Ether (ETH).<\/p>\n<p>Data indicates this was not purely a technical adjustment, as Cardano&#8217;s on-chain and trading metrics vastly outperform Litecoin&#8217;s (LTC).<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/592d6218-8cf4-4185-8f7b-009e433f2328.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ADA futures aggregate open interest. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>A week ago, Litecoin led ADA&#8217;s open interest by a 50% or higher margin. That all changed over the past five days, as Litecoin&#8217;s aggregate futures position was cut by 40%.<\/p>\n<p>Despite facing a similar price correction to Litecoin&#8217;s 30% one between Feb. 20 and 22, ADA had $125-million long contracts liquidations, roughly 19% of the open interest at that time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ADA_trading_volume_and_on-chain_metrics_strengthen\"><\/span>ADA trading volume and on-chain metrics strengthen<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Volume is the first and foremost indicator of investors&#8217; interest. Regardless of the price movement, low trading activity reflects a small user base or a lack of new entrants, which is especially problematic for cryptocurrencies as an emerging asset class.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/cfbe64d4-bc46-4d69-af7d-313e0223aded.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ADA and LTC 3-day average spot trading volume, USD. Source: Messari Screener<\/em><\/figcaption><\/figure>\n<p>Although starting from a much lower base three months ago, ADA&#8217;s trading volume soared in February, while Litecoin was unable to surpass the $2 billion daily average mark. Meanwhile, ADA&#8217;s aggregate spot trading volume at exchanges currently sits at $2.8 billion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/73c6d5e7-b926-4f05-a30d-04c4c101439a.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ADA and LTC 7-day average transfers and transactions, USD. Source: Coin Metrics<\/em><\/figcaption><\/figure>\n<p>Cardano&#8217;s on-chain metrics also provide insight into its rising use and ADA&#8217;s rising open interest. Data shows that up to November 2019, both networks shared a similar level of transfer and transaction value. By mid-2020, Cardano took the lead, getting 10 times more on-chain activity. This difference is now 5 times larger.<\/p>\n<p>Overall, both trading data and on-chain metrics validate ADA&#8217;s futures open interest flipping Litecoin&#8217;s. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/730ac98b-9c88-435a-b0b7-daee68428114.png\"><figcaption style=\"text-align: center;\"><em>VORTECS\u2122 score (green) vs. ADA price. Source: <\/em><em>Cointelegraph Markets Pro<\/em><\/figcaption><\/figure>\n<p>Data from Cointelegraph Markets Pro illustrates that the number of tweets from unique accounts discussing Cardano is 24% higher than the 30-day average over the past 24 hours. Tweet volume is one component of the VORTECS\u2122 score that identified bullish conditions for ADA on Feb. 18, before the recent price surge.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/580m-open-interest-makes-cardano-ada-the-third-largest-futures-market\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# $580M open interest makes Cardano (ADA) the third largest futures market &#8221; On Feb. 3, Cardano\u00a0conducted a hard fork and successfully integrated the Mary upgrade to the testnet, transforming\u00a0the blockchain into a multiasset network similar to Ethereum. This event seems to be one of the reasons for the impressive 475% year-to-date rally of\u00a0ADA, and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":189016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvYTZjYjA3ODUtMmE3Ni00NDYwLWI3NDEtOGRhMTIzMzc4MTVkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74972,75378,74863,74860,75012,75846,74939,73785],"class_list":["post-189015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-bitcoin-futures","tag-cardano","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/189015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=189015"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/189015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/189016"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=189015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=189015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=189015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}