Polkadot futures open interest Strikes $1B since DOT Cost reaches a new ATH

The open interest of Polkadot futures soared to $1 billion, eclipsing Litecoin and also XRP to create DOT the third-largest futures marketplace.
On March 24, the cost of Polkadot’s DOT market corrected by 23 percent in a short six-hour period, resulting in roughly $174 million in liquidations across the futures marketplace. This swift disadvantage move also cut the aggregate open interest by 26 percent. Now that DOT’s open interest is climbing to another record high at $1 billion, so investors may be concerned that another price crash is on the way.DOT/USDT on Binance. Resource: TradingViewAlthough case seriously hurt leveraged longs in the time, the token managed to rally 46% in 10 days, reaching an all-time high of $46. The explosive gain caused investors to regain their assurance fast, and the futures interest has reached a record high of $1 billion.Recently, KwikSwap, a decentralized exchange, expressed interest in using Polkadot’s layer-two remedy to lower prices and increase trade throughput. These are a few of the fundamental reasons behind the increase in futures markets available interest.The price fall on March 24 wasn’t certain to DOT, as the altcoin market capitalization plunged 10% during that period. Nevertheless, DOT’s 23 percent correction was much larger than most altcoins, along with the motive behind it may lay in its $844-million futures interest on March 24. As a comparison, XRP held $780 million in open interest, whilst Litecoin (LTC) registered $662 million.The impact of liquidations depends on how liquid markets have been in the time. So, the $844 million available interest represented over 50 times that figure.Top 10 cryptocurrencies aggregate bids and asks, April 5. Resource: CryptowatchCryptowatch supplies a tool to aggregate exchanges orders and asks, even though there is no history available for such data. The site considers all observable orders within a 1 percent difference from the previous trade.Using the figures in April 5, an individual can observe just how”illiquid” DOT’s novels were compared to XRP and Litecoin. According to Staking Rewards statistics, 65 percent of DOT in flow is locked up in staking mechanisms. No matter the reason behind the smaller bids, it makes a potential risk during applicable liquidations.DOT futures aggregate interest. Resource: BybtOver the previous two months, DOT’s stocks interest dropped, becoming the second-largest derivatives marketplace behind Bitcoin (BTC) and Ether (ETH). Therefore, investors have reasons to be concerned about the liquidation impact in the unexpected price drop.As DOT’s futures markets develop over time, it should attract further liquidity to the spot exchanges. Arbitrage opportunities will arise, and investors will observe that stacking bids 5 percent or 10% below the market is lucrative. Therefore, it may be a matter of time before the mismatch shrinks between stocks open interest and aggregate bids 1 percent under the price.Multiple indicators make a bullish situation for DOTThe VORTECS™ Score, exclusive to Cointelegraph, is a algorithmic comparison of historic and present market conditions derived from a combination of data points, including market sentiment, trading volume, current price movements and Twitter activity.VORTECS™ score vs. DOT price (whitened ). Over the next two weeks, DOT price managed to rally another 22% to $46.60. DOT’s”flippening” of both XRP and Litecoin’s stocks open interest signals that investors tend to be far more interested in Polkadot’s scaling and interoperability potential instead of its competitors’ longer narrow-focused protocols.The perspectives and opinions expressed below are solely those of the writer and don’t necessarily reflect the views of Cointelegraph. Every single investment and trading move involves danger. You should conduct your own research after making a decision.

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