Solana futures (Sol) In the Chicago Mercantile Exchange (CME) lived on March 17, with a trading volume of $ 12.1 million on day 1, which fell compared to Bitcoin (Btc) and Ethereum’s (Eth) CME futures debut.
CME crypto futures comparison by Vetle Lunde. Source: x.com
Vetle Lunde, head of research in K33Rearch, compared The difference between bitcoin (BTC)Ether (Et) and Solana (Sol) CME Futures trading performances on their launch day, and it is clear that the volume of CME futures and open interest come below its competitors.
However, Lunde pointed out that if those that were to be normalized volume in the market cap were reviewed, Sol’s launch was “aligned with two.”
Is the launch of Sol CME Futures a DUD?
Throughout the current bull market, approved ETF spot and CME futures contracts continue to strengthen the investor’s feelings and put the air behind the sails of various cryptocurrencies. Comparing the normalized volume that suits for differences in BTC, ETH and Sol market caps in their first CME Futures Trading Day provides a fair comparison review.
Normalized volume measures the trading activity associated with a crypto market cap, which offers a transparent analysis of various cryptocurrencies. This scale is important because it allows a understanding of the institution’s relationship with respect to a crypto asset market cap.
Normalized volume comparison. Source: Cointelegraph
As shown above, Bitcoin has the highest normalized volume with 0.0319%, while ETH and SOL fall behind with 0.0173%and 0.0166%, respectively. A larger normalized volume suggests an increased investor interest per unit or market cap for Bitcoin.
In addition, the similarity between the Normalized Volume of the ETH and Sol (almost 0.017%) suggests that the scale of Solana’s trading activity is similar to that of the differences of trading volume despite more than $ 20 million on day 1 between ETH and Sol’s CME futures.
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Will Sol CME futures follow the performance of ETH or BTC?
Following the debut of Bitcoin CME Futures on December 18, 2017, the BTC declined 26%, dropping from $ 19,000 to $ 14,000 on December 31, 2017. The correction continued in 2018, marked the beginning of a collective crypto bear collective market.
The launch of Bitcoin, Ethereum and Solana CME, price reaction. Source: Cointelegraph/TradingView
Ether’s price registered a rally of 150% on a new all-time high at $ 4,384, 93 days after the launch of CME futures in Feb.
Considering the trends of Bitcoin and ETH prices, Sol’s price may experience an unsightly rally. The absence of upward price movement after the launch of CME’s futures suggests a lack of distraction to the investor.
However, from a long-term perspective, Sol’s existence in CME increases opportunities for Solana’s liquidity and price discovery because it attracts institutional relationships. A broader effect can potentially open up over time as better market conditions and desirable bullish prices and protocol projections that draw interest in entrepreneurs.
Related: Bitcoin stalls under $ 85k – BTC price levels to watch ahead of FOMC
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
