Due to the crypto-market crash that occurred towards the end of May, bitcoin experienced a fall of 36,000 dollars, reducing the open interest for BTC. However, at the same time, a significant surge for Ethereum occurred, which is the second-largest cryptocurrency in the market.
According to the report by CryptoCompare on Exchange Review, the worth of Ethereum was only 2.5 percent by the end of May 2021. However, regarding the derivatives market, ETH rose to 9.9 percent. On the other hand, BTC experienced a downfall by 25.8 percent within the same time. It was a period during which the open interest of all derivatives plunged to 14.5 percent. Binance, the cryptocurrency exchange, reported the peak open interest numbers for Ethereum perpetual swap, going at one and half billion dollars, accompanied closely by Huobi, OKEx, and Bybit.
On the CME exchange, the Ethereum open interest surged by 146 percent. However, for BTC, the open interest saw a decline of 22.9 percent. In the overall crypto space, the spot volume showed an increase of 26.5 percent, which is $4.8 trillion. Furthermore, the derivatives trading volume rose by 40.4 percent. The report mentioned that the reason for such a huge volume growth was due to the investors’ response to the market’s increased velocity of price changes. The largest exchanges for spot trading included Binance, OKEx, and Huobi Global, whereas the largest exchange for derivatives was Bybit.
Various data shows during the start of the year 2021, the market value of ETH was only around 19 percent of BTC. However, the latest price action showed that ETH was almost at half of BTC for some time.
This rise of ETH and the fall of BTC has initiated several social media discussions on the chances of a “Flippening” occurring, which is a situation in which ETH beats BTC and turns into the top cryptocurrency. The first Flippening became trending in 2017 when ETH’s market cap represented 83 percent of bitcoin’s. A website that keeps track of this event shows that Ethereum’s mining rewards have been surpassing bitcoin’s mining rewards beforehand.
Despite that, bitcoin is far more popular than ETH in terms of Google searches. This includes the search interests in bitcoin’s node count as well as the total active addresses in BTC.