According to crypto analyst Omkar Godbole, decentralized finance (DeFi altcoin projects) is beyond Bitcoin (BTC) and leading altcoin Ethereum (ETH) as leading centralized derivatives exchanges such as the Chicago Mercantile Exchange and Deribit are pegged to two market leaders. It is fast becoming the preferred way to protect smaller cryptocurrencies. For details Cryptocoin. com keep reading.
QCP Capital trades over $2B in DeFi altcoin projects
Darius Sit, chief investment officer at Singapore-based QCP Capital, an early investor in dominant hub crypto options exchange Deribit and one of the largest volume leaders on the platform, says the firm now processes more than $1 billion in crypto trades per month on DeFi platforms.
Running a ledger of more than $2 billion across exchanges, over-the-counter platforms, and DeFi altcoin projects, QCP has recently signed off on DeFi altcoin project Ribbon Finance (RBN) and $1 million option tied to Aave (AAVE) token, and another DeFi project, ThetaNuts Finance. He traded $1 million in Terra (LUNA) options on .
According to crypto analyst Omkar Godbole, while these numbers may seem insignificant compared to the $500 million or more daily volume in the Bitcoin options market on centralized exchanges, they are quite significant for relatively smaller cryptocurrencies like AAVE and LUNA.
According to CoinGecko data, AAVE is the 57th largest cryptocurrency with a market cap of $3.6 billion and a daily spot market cap of $250 million. LUNA, the native cryptocurrency of Terra’s Blockchain, is ranked 14th according to the market assessment. Major centralized exchanges such as Deribit do not offer options contracts tied to these currencies.
