Crypto Market Decline: AVAX Open Interest Drops, HYPE Underperforms
The crypto market experienced a decline early Thursday:
- Ether dropped over 3%, falling below $4,000.
- Bitcoin (BTC) decreased by 1.5% to $115,600, almost negating Wednesday's gains.
- Other major cryptocurrencies also fell, influenced by declines in Nasdaq and S&P 500 futures due to potential U.S. government shutdown.
- Recent outperformers like ASTR, AVAX, and PUMP faced double-digit losses within 24 hours.
Market Insights:
- Cryptocurrencies are seen as indicators for broader financial market shifts.
- Altcoins and smaller market currencies have weakened since the Federal Reserve’s rate cut last week.
Token Developments:
- Hyperliquid’s HYPE token underperformed, facing competition from Aster and concerns over upcoming token unlocks.
- Aster overtook Hyperliquid in daily perpetual trading volume, with its open interest increasing 33,500% to $1.25 billion.
- ASTER token surged over 344% in value, while HYPE fell from $58.4 to $43.
- 237 million HYPE tokens will gradually become liquid over two years starting late November, causing investor anxiety.
Derivatives Market:
- Open interest (OI) in futures for major tokens declined, with AVAX dropping nearly 12%.
- BTC futures OI remains high; ETH futures OI increased despite large liquidations on Hyperliquid.
- USDT- and dollar-denominated SOL perpetuals saw a slight increase in OI as the spot price approached $200.
- XRP, SOL, HBAR, TRX, SUI, and XLM exhibit negative funding rates, indicating bearish sentiment.
- On CME, BTC futures OI is declining, while ether futures OI reached record highs above 2.2 million ETH.
- Bears dominate Deribit options, with BTC and ETH puts priced at a premium over calls.