The perpetual-contracts market played a key role in pushing Ethereum above $3500. Delphi Digital researchers reached this conclusion in their report.
3/ Funding was at healthy levels throughout August, but made a massive push up as traders aped into ETH perp longs.
Funding began to spike just before ETH’s monster candle yesterday, which makes it clear that the perp market played a key role in pushing ETH above $3,500. pic.twitter.com/ZfSpH4JSrk
— Delphi Digital (@Delphi_Digital) September 2, 2021
According to their observations, the funding rate for perpetual contracts remained relatively stable through August and began rising ahead of the price spike in early September, driven by traders moving into long positions.
Delphi Digital noted that the leading gainers in August were tokens of Layer-1 networks, while DeFi-assets stagnated.
The market situation drew comparisons with the summer of 2020, when Bitcoin consolidated and altcoins rose, the experts noted.
However, funding rates for Bitcoin contracts also rose sharply in early September. This suggests sustained demand for digital gold, according to Delphi Digital.
In their view, traders began buying Bitcoin positions in anticipation of a narrowing gap in growth with altcoins.
For news of new all-time highs in altcoins, the NFT market boom, and other industry developments in August, read ForkLog’s monthly report:
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