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ETH derivatives demand suggests this about its performance in Q3 and Q4

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According to a recent CCData report, both spot and derivatives demand on centralized exchanges surged by 14.2% to $2.71 trillion. The derivatives segment contributed most of that demand at $2.13 trillion which is equivalent to a 13.7% upside.

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  • Ethereum demand in the derivatives segment outweighed spot demand in June.
  • ETH’s funding rate also witnessed a rise, especially in the last week of June.

Recent data analyzing the state of demand for crypto reveals that the derivatives segment grew significantly in June. Ethereum [ETH] was among the cryptocurrencies that have been tapping into that demand.


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June turned out to be quite an interesting month not only for ETH but the crypto market in general. This is because there was a significant surge in demand during the month.

According to a recent CCData report, both spot and derivatives demand on centralized exchanges surged by 14.2% to $2.71 trillion. The derivatives segment contributed most of that demand at $2.13 trillion which is equivalent to a 13.7% upside.

ETH was one of the cryptocurrencies that benefited from the surge in derivatives demand. For perspective, this was reflected in its open interest metric which registered a significant upside from its lowest point in the last 2 months (in May). It recently peaked at a new high at the start of July, confirming strong activity in the derivatives market.

ETH open interest and funding rates

Source: CryptoQuant

Ethereum’s funding rate has also been on the rise, especially in the last week of June. This further confirmed the influx of liquidity into ETH derivatives. But why has derivatives demand been higher than spot demand? Perhaps one of the reasons was the ease of investing in the derivatives segment. But one of the major reasons could also be that it offers leverage opportunities.

Is the prevailing leverage enough for a substantial impact?

The level of confidence in the market tends to impact the demand for leverage. As such, the last week of June attracted a surge in the demand for leverage as many traders anticipated higher prices.

ETH estimated leverage ratio

Source: CryptoQuant

Higher leverage often confirms some directional confidence in the market. However, it also lends the underlying asset to potential liquidations which may trigger a pivot.

ETH’s latest upside failed to rally back above the $2,000 price range despite an attempt. It exchanged hands at $1,913 at press time. Furthermore, the level of liquidations surged slightly in the last two days.

ETH liquidations

Source: coinglass


How many are 1,10,100 ETHs worth today


ETH long liquidations peaked at $8.44 million in the last 24 hours compared to $522,000 short liquidations. However, these liquidations are too low to have an impact on the price.

Nevertheless, the observed growth in derivatives demand and appetite for leverage is already a healthy sign. It suggests that the market recovery that was seen in the first half of 2023 might continue into the second half of the year.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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