Solana Futures (sol) went online on the Chicago Mercantile Exchange (CME) on March 17 with a trading volume of $12.1 million, which is insufficient compared to Bitcoin (Bitcoin) (BTC) and Ethereum (eth)CME Futures made its debut.
CME Encrypted Futures Comparison Vetle Lunde. Source: X.com
Vetle Lunde, Head of Research at K33Research, Vetle Lunde, Comparative The Difference Between Bitcoins (BTC),ether (ETH) and solana (Sol) On its launch day, it was clear that Sol’s CME futures volume and open interest were much lower than its competitors.
However, Lund noted that Sol’s release is “more close to both” if standardized market caps are evaluated.
Did SOL CME futures trigger fools?
Throughout the current bull market, the on-site ETF approval and the launch of CME futures contracts have always enhanced investor sentiment and threw the wind into the sails of various cryptocurrencies. Comparing the normalized volume of market cap differences adjusted for the first CME futures trading day provides a fairer comparative analysis.
The normalized batch volume of transaction activity relative to the market value of crypto assets provides a transparent evaluation of different cryptocurrencies. This metric is valuable because it can understand institutional participation about the market value of crypto assets.
Normalized volume comparison. Source: Cointelegraph
As shown above, Bitcoin has the highest normalized magnitude at 0.0319%, while ETH and SOL lag behind at 0.0173% and 0.0166% respectively. Larger normalized quantifications indicate that Bitcoin investors have higher per unit or market capitalization.
Furthermore, although the volume difference between ETH and SOL’s CME Futures is over $20 million, the similarity between the standardized volumes of ETH and SOL (approximately 0.017%) suggests that Solana’s trading activity scale is similar to Ether.
Related: Solana deletes ‘Cringe’ ads, criticized for being ‘tooth deaf’ due to gender issues
Will SOL CME futures follow ETH or BTC performance?
After the debut of Bitcoin CME futures on December 18, 2017, BTC fell 26%, down to $14,000 by December 31, 2017. The correction continued into 2018, marking the beginning of a collective crypto bear market.
Bitcoin, Ethereum and Solana CME released, price reaction. Source: Cointelegraph/TradingView
Ether Price is 150% new all-time high price 93 days after launching on February 8, 2021 to $4,384. Launched on February 8, 2021. At a new height, Altcoin made a sharp correction, but at the end of 2021, Altcoin reappeared, with the current high price reaching $4,867 at $4.867 in November 2021.
Given the price trends of Bitcoin and ETH, Sol’s prices may experience less enthusiastic rally. After the launch of CME Futures, no upward price movements indicate a lack of investor excitement.
However, from a long-term perspective, the presence of Sol in CME increases the liquidity and price discovery opportunities for Solana because it attracts institutional participation. With better market conditions and favorable bullish prices and agreement revenue forecasts, wider impacts may unfold over time.
Related: Bitcoin Stalls Below $85K – Key BTC Price Levels to Watch Before FOMC
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
