ChainCatcher news, the on-chain options market has seen record-breaking trading volume in the past two weeks, with $44 million recorded in the first week of February and $28 million in the last week of January. Currently, over 80% of the trading volume is concentrated in the two major protocols Ithaca and Derive, which processed $26 million and $11 million in trading volume, respectively, last week, while the third-place Overtime only recorded $2 million in trading volume. There is no consensus yet on the reasons for the surge in trading volume. Possible factors include the annualized yield for USDT lending on Aave has dropped to about 2%, making it less attractive; and the market's anticipation of Hyperliquid's upcoming HIP-4 market. A well-known DeFi trader, Route 2 Fi, recently posted on the X platform stating that the 2% annualized yield for USDT on Aave has become unattractive, sparking widespread discussion in the community, reflecting that some users are actively seeking alternative investment channels with higher returns.
On-chain Options Trading Volume Reaches Record High, Low Lending Yields May Be Key Driver
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Summary
On-chain options trading volume reached a new high in the past two weeks, with $44 million in the first week of February and $28 million in the last week of January. On-chain data shows that over 80% of the volume came from Ithaca and Derive, which handled $26 million and $11 million, respectively. Overtime trailed with $2 million. The rise may be linked to falling USDT lending yields on Aave, now around 2%, and anticipation of Hyperliquid’s HIP-4 market. Route 2 Fi recently criticized the 2% yield, sparking debate and suggesting users are chasing better returns.
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