So, Solana futures (SOL) decided to make their grand entrance on the Chicago Mercantile Exchange (CME) on March 17, and guess what? They brought a whopping trading volume of $12.1 million on day one! 🎉 But hold your applause, folks, because that’s like showing up to a party with a bag of chips while Bitcoin (BTC) and Ethereum (ETH) are rolling in with caviar and champagne. 🥂
Vetle Lunde, the Head of Research at K33Research (a title that sounds way cooler than it probably is), took a look at the trading performances of Bitcoin, Ether, and our dear friend Solana on launch day. Spoiler alert: SOL’s CME futures volume and open interest were like the kid who gets picked last for dodgeball. 😬
But wait! Lunde did point out that if we normalize the volumes to the market cap, SOL’s launch “aligns closer to the two.” So, it’s like saying, “Hey, at least I’m not the worst!” 🎈
Was the SOL CME futures launch a dud? 🤷♀️
In this bull market, spot ETF approvals and CME futures launches have been like the wind beneath the wings of cryptocurrencies. 🚀 Comparing the normalized volumes adjusted for market cap differences of BTC, ETH, and SOL on their first CME futures trading day gives us a fairer picture. Think of it as a reality check for crypto assets. 📊
Normalized volume measures trading activity relative to a crypto asset’s market cap, which is basically a fancy way of saying, “Let’s see who’s really popular.” This metric is super valuable because it helps us understand how much institutional engagement a crypto asset is actually getting. 🧐
As you can see, Bitcoin is the prom queen with the highest normalized volume at 0.0319%, while ETH and SOL are like the wallflowers at 0.0173% and 0.0166%, respectively. A higher normalized volume means more investor interest per unit or market cap for Bitcoin. 📈
Interestingly, ETH and SOL have similar normalized volumes (around 0.017%), which means Solana’s trading activity is like that of Ether’s, even though there’s a $20 million difference in trading volume on day one. Talk about a sibling rivalry! 👯♂️
Will SOL CME futures follow ETH or BTC’s performance? 🤔
After Bitcoin CME futures debuted on December 18, 2017, BTC took a nosedive of 26%, plummeting from $19,000 to $14,000 by the end of the year. It was like watching a slow-motion train wreck. 🚂💥
On the flip side, Ether had a 150% rally to a new all-time high of $4,384, just 93 days after its CME futures launch on February 8, 2021. But then, of course, it had a sharp correction, because what goes up must come down, right? 🎢
Considering the price trends of Bitcoin and ETH, SOL’s price might be in for a less enthusiastic rally. The lack of upward movement after its CME futures launch suggests investors are about as excited as a cat at a dog show. 🐱🐶
However, looking at the long game, SOL’s presence in the CME could open up opportunities for liquidity and price discovery, attracting institutional engagement. Who knows? Maybe in the future, SOL will be the life of the party! 🎉
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2025-03-18 20:52