The derivatives markets have evolved a lot. Previously, those who invested in cryptocurrency either traded with a buying or selling perspective. As the market evolved, cryptocurrency investors are willing to trade the asset in bearish and bullish situations, trying to take advantage of the volatility. They are looking to hedge, mitigate risks and do a lot more.
Currency-based derivatives offer a big scope in the cryptocurrency market. There are perpetual contracts, swaps, futures, forward contracts and options.
The numbers of products made possible in the traditional markets is endless due to the different types of underlying assets. The limitations as to the numbers of the derivatives products did not prevent it from growing. The pandemic has led to an accelerated growth in the crypto currency market.
The crypto derivatives market is growing significantly and it is touching upon an all-time high open interest at $7.4 billion just last week — in large part due to its ability to manage risk and generate returns.
In this regard, Sydney Ifergan, the crypto expert tweeted: “Ripple (XRP) are facilitating derivatives market as the derivatives market is an important topic to understand and becoming indispensable for every market development cycle.”
Crypto Derivatives are in the rise. The crypto market is maturing and the applications of real-world solutions is also maturing. New financial products are driving global adoption. The volume of trading is improving with traders looking at crypto as the best inflation hedge and derivative. These are desirable for their ability to manage risks and generate the returns.
Breanne M. Madigan expressed that the growth of crypto derivative markets will supercharge the industry to the next level.
Ripple (XRP) Efficient Payment Processing
Ripple are fulfilling the 3 things, which are critical for efficient payment processing like speed, transparency and liquidity.
Some investors are curious as to whether Ripple will always be a commodity like gold etc. or if it will get to a stage in the near future where banks (for example) will accept crypto as a deposit for a mortgage.
Other investors are wondering if in case of a prolonged regulatory uncertainty do the banks need to hold XRP or if XRP can be held by other type of entities that have not the same restrictions like Money Gram for example.
Some are also curious to know if Brad is able to see a point in the near future at which cryptocurrencies will be readily available for purchase, deposit or withdrawal from traditional banks and at branches.