Join Delphi Research today and immediately get access to our full Member Portal!
Join Delphi Research today and immediately get access to our full Member Portal!
Back

Market Troubles, ETH Deflation, NFTs Cool Off

Sep 7, 2021 · 3 min read

By Joo Kian

Market Update

The crypto market experienced a flash crash as BTC moved downwards to ~$42k and ETH to ~$3k. ETH and BTC eventually bounced back to  to ~$47k and ~$3.5k respectively. A negative feedback loop of liquidations seems to be the primary cause, as the market punished over-leveraged apes.

Leverage Wiped Out Despite Open Interest ATHs

Open interest in ETH futures hits an all-time high, pushing ETH above $4,000, just short of its ATH at $4,200. High open interest can be seen as traders starting to open more futures positions, most often with some amount of leverage. Looking at the long-term funding trend, the current funding rates at ~0.05% are much lower to the prior peaks of ~0.20%. Low, stable funding implies a balanced as demand isn’t skewed towards either longs or shorts.

Delphi Dailys are absolutely free to read on our portal and get in your inbox - you just need to sign up with your email!

Sign Up For Free