Volatility derivatives are coming to DeFi with backing from several VC giants.
Volatility is the degree of variation of a trading price over time. In other words, volatility indicates the amount of uncertainty about the size of changes in an asset's value. The higher an asset’s spread of values means the higher volatility of it.
Volatility is a critical characteristic for investors as it shows both their risks and possible gains that comes with purchasing an asset. Cryptocurrency volatility is one of its most peculiar elements. As cryptocurrencies have no central authority and, correspondingly, no controlled emission mechanism, they are highly volatile. There are some other cryptocurrency features that make it volatile, such as having no intrinsic value, prevailing short-term investments and lack of institutional capital. Still, cryptocurrencies volatility is also what attracts a lot of investors and make it possible for the industry to develop so quickly after a lot of money was gathered due to the volatility of Bitcoin.
Bitcoin's recent price action and the increasing pace of institutional adoption suggest that traders betting on the June $80,000 Bitcoin call option will be handsomely rewarded.20027
A DeFi lending platform says that it’s aiming to tackle downsides in stablecoins — and is planning to launch on the Binance Smart Chain within weeks.6863
Bitcoin will become more stable and liquid when regulatory certainty is in place, Bridgewater’s director of investment research argued.12266
Bank of Korea Governor Lee Ju-yeol has expressed skepticism over the recent crypto rally, stating that the bank is progressing with a digital currency project.14171
Economist Frances Coppola and senior commodity strategist at Bloomberg Mike MgGlone clash on everything Bitcoin.16551
Analysts bashed Bitcoin despite JPMorgan co-president Daniel Pinto claiming that Bitcoin adoption is inevitable at some point.12657
The RAI stablecoin will attempt to bring stability to DeFi markets with the long-term goal of becoming a stable global reserve asset not tied to any nation’s currency.14034
Bitcoin volatility is not at the same level seen during the 2017 bull run, but analysts still say lower price swings are necessary to maintain upward momentum.9080
Gold should help crypto investors hedge against the risks of highly unstable prices of cryptos like Bitcoin, the CEO of Newcrest Mining said.11501
A report from Kraken has identified last month’s BTC volatility at levels not seen since the ‘Black Thursday’ crash of early 2020.15194
A DeFi protocol is creating a bridge between traditional finance and crypto markets through a supply-elastic token that tracks the VIX.26645
Stack Funds’ analysis suggests that Bitcoin’s floor price has yet to be found as the Chinese New Year approaches.18528
Larry Fink said he was fascinated with the media hype surrounding Bitcoin but expressed concerns about the crypto asset's volatility and market size.9609
Blockchain proponents claim that agricultural asset-backed tokens would make it easier for farmers in Argentina to attract investment and access liquidity amid a nationwide economic crisis.5937