Ethereum (ETH) Skyrockets to New All-Time High on BitMEX

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Fri, 08/14/2020 - 17:43
Alex Dovbnya
Ethereum is not getting tired of setting new records, with the ETHUSD swap reaching an all-time high on BitMEX
Ethereum (ETH) Skyrockets to New All-Time High on BitMEX
Cover image via stock.adobe.com
Contents

BitMEX’s Ether (ETH) – US dollar perpetual swap recently reached a new all-time high of $445.

The product’s previous high ($435) was ironically on the same day it was launched. 

445
image by bitmex.com

The product that changed the Ethereum market   

The perpetual swap, which allows to short or long ETH with a 50x leverage, made its debut on BitMEX on Aug. 2, 2018. Prior to that, only the ETH/BTC pair was available on the exchange. 

Since BitMEX pretty much enjoyed absolute hegemony in the derivatives market in 2018, it took only one month for it to become the top ETH/USD pair by trading volume.    

The ETHUSD swap derives its value from the spot price of Ethereum, but BitMEX only accepts collateral in Bitcoin, meaning that you don’t have to actually touch the underlying asset.

ETH collapsed 60 percent in a little over a month (from Aug. 2 to Sept. 12). This led to some theories that BitMEX was responsible for the drawdown since it attracted overleveraged speculators who were not using the swap for hedging.   

ETHUSD
image by bitmex.com

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ETH is still down 69 percent 

ETH has been on a roll for the past two days, surging by almost 15 percent. 

Prior to that, the network recorded the largest amount of daily transaction fees, surpassing the previous high set during the peak of the last bull run. The blockchain is experiencing due to the decentralized finance boom.   

With that being said, the second-largest cryptocurrency is still down a staggering 69 percent from its lifetime high of $1,441 that was reached across spot exchanges on Jan. 10, 2018. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.