The Ethereum Name Service (ENS) derivatives market has experienced a significant surge in activity. ENS’s open interest has dramatically increased from a year-to-date (YTD) low of $26 million on May 19 to $153 million, its highest level since the token’s launch. This growth in open interest, which refers to the total number of outstanding derivative contracts that have not been settled, signifies a rise in trader participation.
As of the latest data, ENS is trading at $31.49, making it the cryptocurrency asset with the most gains over the past 24 hours. Since initiating its recent uptrend on June 25, ENS’s open interest has soared by over 105%, from $73 million to $153 million. This increase in open interest, alongside a more than 40% rise in ENS’s value over the past week, underscores a strong and continuing bullish trend.
The positive funding rate across cryptocurrency exchanges further supports this bullish outlook. Currently, ENS’s funding rate is 0.01%, indicating that more traders are taking long positions, expecting a price rally. Positive funding rates in perpetual futures contracts suggest that the contract price is staying close to the spot price due to higher demand from buyers anticipating further price increases.
Crypto analyst Javon has projected a potential 138% rally for ENS, targeting a price of $76.12. This prediction hinges on the condition that ENS’s price remains above its breakout level, indicating robust support from bullish traders. If the current uptrend persists, ENS’s next price point is expected to be $34.64. However, a decline in market activity could invalidate this bullish projection, potentially driving the price down to $30.94.
The notable increase in ENS’s open interest and its rising price indicate strong market confidence and continued bullish sentiment. With traders increasingly entering long positions and the token’s funding rate remaining positive, ENS appears poised for potential further gains, provided it maintains its current uptrend and market support.
