Solana Futures Launch on CME Sees $12.1M Volume, Lags Bitcoin, Ethereum
1min read Solana futures (SOL) on the Chicago Mercantile Exchange (CME) commenced trading on March 17, with a trading volume of $12.1 million on the first day. This volume was notably lower compared to the debuts of Bitcoin (BTC) and Ethereum (ETH) futures on the same platform.
Vetle Lunde, Head of Research at K33Research, highlighted the disparity in trading volumes and open interest between Bitcoin, Ether, and Solana on their respective launch days. However, Lunde noted that when volumes are normalized to the market cap, Solana's launch performance aligns more closely with its competitors.
Ask Aime: What is the trading volume of Solana futures compared to Bitcoin and Ethereum futures since their debut?
Throughout the current bull market, the approval of spot ETFs and the launch of cme futures contracts have consistently boosted investor sentiment and driven the performance of various cryptocurrencies. Comparing the normalized volumes adjusted for the market cap differences of BTC, ETH, and sol on their first CME futures trading day provides a fairer comparative analysis.
Normalized volume measures trading activity relative to a crypto asset’s market cap, offering a transparent evaluation across different cryptocurrencies. This metric is valuable as it allows an understanding of institutional engagement with respect to a crypto asset’s market cap.
Bitcoin has the highest normalized volume with 0.0319%, while ETH and SOL fell behind with 0.0173% and 0.0166%, respectively. A greater normalized volume suggests higher investor interest per unit or market cap for Bitcoin. Additionally, the similarity between ETH’s and SOL’s normalized volumes (roughly 0.017%) indicates that Solana’s trading activity scale is similar to Ether’s despite the trading volume differences of more than $20 million on day 1 between ETH and SOL’s CME futures.
Following the debut of Bitcoin CME futures on Dec. 18, 2017, BTC declined by 26%, dropping from $19,000 to $14,000 by Dec. 31, 2017. The correction continued into 2018, marking the beginning of a collective crypto bear market.
Ether price registered a rally of 150% to a new all-time high at $4,384, 93 days after the CME futures launch on Feb. 8, 2021. Following a new all-time high, a sharp correction occurred, but the altcoin rallied again toward the end of 2021 to attain its current all-time high at $4,867 in November 2021.
Considering the price trends of Bitcoin and ETH, SOL’s price may experience a less enthusiastic rally. The absence of upward price movement after its CME futures launch suggests a lack of investor excitement. However, from a long-term perspective, SOL’s presence in the CME increases the opportunities for Solana's liquidity and price discovery as it attracts institutional engagement. A wider impact could potentially unfold over time as better market conditions and favorable bullish price and protocol revenue projections draw traders’ interest.
