As Bitcoin Cash (BCH) tokens experience a revival of activity and value, open interest in futures tracking the cryptocurrency has surged to May 2021 levels. Data shows that BCH prices have doubled in the past week, becoming one of the top-performing tokens above a $1 billion market capitalization. Bitcoin (BTC) and ether (ETH) added 13% and 8% respectively in this period.
Open interest, or the number of unsettled futures contracts, rose to over $400 million on Monday from just $75 million the week prior. Most of the trading interest arose from the crypto exchange Binance, where traders opened $240 million worth of BCH long or short positions. This metric can be used as an indicator to determine market sentiment and the strength behind price trends.
Two key catalysts for the sudden trading interest in BCH are a network upgrade and an influential exchange listing. The network hard fork in May improved the security and privacy of the Bitcoin Cash network and introduced plans for “CashTokens”. Additionally, the launch of EDX Markets, backed by traditional finance heavyweights Fidelity Digital Assets, Charles Schwab, and Citadel Securities, opened trading last Tuesday, supporting BCH along with BTC, ETH, and LTC.
The sudden price move has attracted retail trader attention, with social discussions about the token rising to their highest in three years and trading volumes this year hitting a record, according to crypto research firm Santiment.