CoinDesk Analysis Team
CoinDesk
-
Volmex announces 14-day implied volatility index tied to SOL.
-
More indices to be debuted in months ahead, Volmex said.
Crypto derivatives protocol Volmex Finance unveiled a new implied volatility index for programmable blockchain Solana's SOL token on Tuesday. The index is a way to measure expected price swings in the world's fifth-largest cryptocurrency by market value.
The SVIV index measures forward-looking 14-day expected volatility in SOL, Volmex said in an email to CoinDesk, adding traders can track the same to see the degree of potential SOL price swings (in either direction) over the following two weeks.
Volmex said it would eventually debut longer-duration SOL implied volatility indices, including the widely-tracked 30-day gauge and derivatives linked to the same, allowing market participants to place bets on volatility.
The so-called "vol trading" involves profiting from the degree of price fluctuations rather than the price direction. Traders use tools like options tied to the underlying asset and futures tied to volatility indices to bet on or hedge against volatility.
Perpetual futures tied to Volmex's bitcoin implied volatility index (BVIV) and the ether index (EVIV) have been trading on Bitfinex since early April.
Both indices gauge the 30-day expected volatility and have been adopted by institutions. Early this year, principal trading firm Arbelos Ltd and B2C2, an institutional liquidity provider for digital assets, completed the first bilateral option transaction on the BVIV index.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Solana revenue hits multi-month lows as Pump.fun competition, Ethervista, launch on Ethereum
Solana's (SOL) daily revenue hit a six-month low on Monday, accompanied by a drop in its daily transaction volume. The rapid decline reflects a drop in trader interest following the launch of Pump.fun competitors Ethervista on Ethereum and SunPump on the Tron blockchain.
Ethereum exchange reserve increased by 163K ETH in five days amid price consolidation
Ethereum (ETH) is down over 2% on Tuesday following an indication of selling pressure due to an uptick in its exchange reserve. However, other on-chain metrics indicate mixed investor sentiment amid ETH's price consolidation.
XRP breaks past key resistance, Ripple announces plans for Ethereum-compatible smart contracts
Ripple (XRP), a cross-border payment remittance firm, made several key announcements in Japan and Korea on September 3. One of the key announcements was the plan for an Ethereum-compatible sidechain on the XRP Ledger.
Bitcoin recovery faces challenge at key resistance zone, gains likely temporary
Bitcoin (BTC) trades at around $59,000 on Tuesday after a slight recovery the day before. However, this rebound might be short-lived as it nears a crucial resistance barrier. Institutional interest is growing, driven by VanEck’s optimistic Bitcoin forecast, a strategic partnership between Metaplanet and SBI VC Trade, and increased wallet holdings.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.