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Eurex Reports Week Derivatives Demand for July

The OTC market remained strong year-on-year, but slumped dramatically compared to June.

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Eurex, a subsidiary of the Deutsche Börse Group, has published its monthly volumes on Monday, showing a decline across all classes of derivatives products in July on a year-on-year basis.

The exchange pointed out that the European equity derivatives took the worst hit with a year-on-year decrease of 23 percent in the monthly volume.

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For the entire derivatives market, including European equity index derivatives and European interest rate derivatives, Eurex witnessed a total year-on-year decrease of 13 percent with a monthly volume of €1.12 billion, compared to €1.3 billion in the same month the previous year.

According to the exchange, the ongoing uncertainty in dividend pricing is a challenge in the market.

Notably, in June the European exchange reported excellent figures almost across all sectors. Month-on-month, the total derivatives market decreased by 41.6 percent.

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OTC market remained positive overall

However, coming to the over-the-counter (OTC) clearing market, most of the reported numbers were positive for the month.

The average daily cleared volumes decreased by 13 percent in July to €99 billion, compared to the previous year’s same month’s figure of €114 billion, because of the reduced volumes in Forward Rate Agreements. 

The notional outstanding volumes for the OTC market went up by 53 percent, while the interest rate swaps remained a solid performer with an increase in the average daily cleared volumes by 27 percent year-on-year.

In the repo market, Eurex’s business grew to €86.9 billion of average term-adjusted volume, growing 37 percent year-on-year.

The Eurex commodities market, however, echoed the derivatives segment and witnessed declines across all major product suite.

Meanwhile, Eurex is going to launch options on Euro-Buxl Futures (OGBX) next month, thus offering hedging and trading opportunities at the very long end of the interest rate curve.

Blockchain

Will Uniswap [UNI] Survive The Ongoing Token Outflow?

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The surprise launch of Uniswap’s UNI governance token created a lot of buzz in the DeFi world. Days after climbing to an all-time high of $7.07, UNI shed more than 46% of its gains in just two days when it dropped to $3.79. Despite the dip, UNI bounced back, and at the time of writing, the token was priced at $4.97.

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However, according to a recent development, most users who claimed UNI either sold or transferred all of their stakes shortly thereafter. This was revealed by the crypto-analytic firm, IntoTheBlock that tweeted,

“The day the UniswapProtocol’s token $UNI was released, there were 178.330 active addresses. By analyzing the number of zero balance addresses, we can confirm that most UNI claimers either sold or transferred all of their stake immediately.”

Source: Intotheblock.com

Outflow in tandem with Price Surge

The number of active addresses reached an all-time high of 178.33K on the 17th of September, a day after its launch on Ethereum mainnet. On the same day, the number of ‘Zero balance addresses’ climbed to 104.83K. But as the price of the token increased and reached ATH, the number for active addresses saw a massive outflow of funds.

Notably, this continued even after UNI suffered a drop following the market downturn in which pulled down several DeFi tokens to lose significant value.

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Currently, the token’s price appeared to be headed for a recovery route, but the same cannot be said for the figures for daily active addresses.

Despite this, many investors were bullish on Uniswap’s capabilities. Arthur Cheong, the Founder of Defiance Capital recently tweeted in favor of the protocol,

“I used to be skeptical of Uniswap’s model due to its capital inefficiency and inability to reject toxic taker flows but turn out there’s a lot more nuanced than that when it comes to scaling MM and liquidity.”

He added,

“One year ago, no professional market-maker/trader thinks the Uniswap model will work in the long-term and will be able to challenge centralized exchange in volume. Just goes to show that extrapolating tradfi knowledge to DeFi doesn’t guarantee you to be a know-it-all.”

UniSwap [UNI] Ownership Stats

Source: Intotheblock.com

According to ITB, there are currently 14 whales that own more than 1% of the total circulating supply, out of which three addresses were highly active. The number of investors, who own 0.1%-1% of the total tokens in circulation, stood at 36. Retail volume, on the other hand, amounted to just 8.07% of the total ownership concentration.


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Author: Ketaki Dixit




Experienced writer and editor with a demonstrated history of working in the industry. Skilled in Copywriting, Web Content Writing, Copy Editing, Writing, Cryptocurrency News Writing, and News Editing.

Source: https://coingape.com/uniswap-uni-survive-token-outflow/

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Yearn.finance (YFI) On “Life Alert” After Weak Attempt To Hold Support

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Yearn.Finance (YFI) had such an abrupt rise to fame, now that momentum has changed, the plunge could be equally as dramatic. Thus far, any attempt to hold above support has been weak, says one crypto analyst.

They also claim that YFI is currently on “life alert” and in danger of a much more drastic fall if the DeFi token cannot hold strong here.

Yearn.Finance Falls Back To Support At Recent Local Low, Lingering On “Life Alert”

The popularity in DeFi tokens like Yearn.Finance, LEND, UNI, and several others have been what’s propelled the crypto market back toward profitability and out of the bear market gutter.

The trend has become so dominant in the crypto space, the term “DeFi” now outweighs all mentions of Ethereum in the media by a large margin.

Related Reading | Top Defi Dogs YFI, LEND, and UNI Correct Nearly 20%

ERC-20 tokens even outgrew Ethereum’s market cap when combined, because of how popular and profitable the trend has become. Nearly every new week, another DeFi token turned little investment into a small fortune.

But now, the tides have been turning, and top DeFi dogs have been digging for bones, causing them to fall deeper than anyone would have expected. It has also left YFI on “life alert” according to one crypto trader.

yfi yearn.finance yifusd crypto altcoin defi ethereum

YFIUSDT Yearn.Finance Retesting Support | Source: TradingView

YFI Flying High Could Lead To Dramatic Collapse To Bitcoin Prices

YFI, for example, has tumbled from more than four times the price of a Bitcoin to just $22,000 per token. And while that sounds expensive for any token to beat out Bitcoin in price, its quite a feat.

That achievement alone was enough to cause Yearn.Finance value to skyrocket in its earliest days. But like Bitcoin, it got overheated too quickly and is now pulling back big time.

YFIUSDT finds itself back falling to support previously tested, that its now at risk of losing. If Yearn.Finance loses this support, it could fall back toward Bitcoin prices.

Related Reading | Yearn.Finance (YFI) Flies 15% Percent From Local Price Floor, Fractal Targets $60K+

What makes this token so much more valuable than Bitcoin price-wise, is just like the leading cryptocurrency by market cap itself: digital scarcity.

There are only 30,000 YFI tokens, making what little liquidity to enter the token supply a powder keg for explosive price action. Unfortunately, this also works in reverse, as YFI holders are seeing right now.

But when the DeFi token finally turns back around, it could be an investment of a lifetime due to just how limited the supply is.

Featured image from DepositPhotos, Charts from TradingView

Source: https://www.newsbtc.com/2020/09/24/yfi-on-life-alert-after-weak-attempt-to-hold-support/?utm_source=rss&utm_medium=rss&utm_campaign=yfi-on-life-alert-after-weak-attempt-to-hold-support

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Bitcoin Cash long-term Price Analysis: 24 September

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Following Bitcoin’s footsteps, many of the market’s altcoins noted a slump in their price when the week began. The case for Bitcoin Cash was the same, with the coin falling on the charts by over 10 percent on 21 September. Since then, BCH has registered lower lows and lower highs and the coming week is likely to settle the direction in which Bitcoin Cash’s price will move.

At press time, Bitcoin Cash was being traded at $212 with a market cap of $3.9 billion. Over the course of the past 24-hours, BCH was observed to have registered a minor drop of 0.7 percent, after having noted a trading volume of $1.3 billion.

Bitcoin Cash 4-hour chart

Source: BCH/USD, TradingView

According to the 4-hour chart for Bitcoin Cash, the coin’s price action has been part of a descending channel formation and in the coming week, the price may continue to remain within the formation. However, it might also register a breakout, one which is traditionally likely to be northbound.

At press time, BCH was very close to testing the support at $211, and if the coin were to endure even more bearish pressure, the cryptocurrency may need the help of its second support level at $204. However, if the breakout does happen in the coming week, then BCH may head towards the resistance level at $221.

Source: BCH/USD, TradingView

As per the cryptocurrency’s technical indicators, it is likely that BCH may try to move out of the descending channel formation in the coming week. The MACD indicator had just undergone a bullish crossover, with the MACD line inching past the Signal line. The RSI, on the other hand, seemed to be moving away from the neutral zone and back into the oversold zone.

Source: CoinMetrics

In sync with the market’s altcoins, the correlation with Bitcoin remained strong for BCH and can be considered to be the reason behind the previous week’s fall. Over the past year, the BCH-BTC correlation has risen from 0.72 to 0.81, making BCH extremely likely to dance to Bitcoin’s tune.

Conclusion

Bitcoin Cash has been confined within the descending channel formation and over the coming week, provided there is significant bullish pressure, it will make an attempt to break out of the price formation. In such a case, its immediate resistance at $221 will be its likely target. However, if the cryptocurrency’s price continues to exist within the formation, then a dip towards the second support level at $204 cannot be ruled out.

Source: https://eng.ambcrypto.com/bitcoin-cash-long-term-price-analysis-24-september

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