PowerTrade Experiences Surge in Altcoin Options Trades, with XRP, SOL, and DOGE Leading the Way

Surge in Altcoin Options Activity on PowerTrade Amid Volatile Market Conditions

The increased volatility in global markets this week has spurred traders to explore altcoin options as a means of hedging risks and capitalizing on short-term price movements, with PowerTrade seeing a marked uptick in options activity.

XRP options trading has seen a significant boost, with volumes exceeding $5 million. The majority of trades have been concentrated in short-term expiration options. According to data from PowerTrade, there is a near equal split between put options, with strike prices between $1.80 and $1.98, and call options, which are concentrated in the $1.80 to $1.93 range.

“Such a balanced flow indicates that traders are positioning for significant moves in the short term—likely driven by external factors such as regulatory shifts or a breakout pattern,” commented Bernd Sischka, Head of Institutional Sales at PowerTrade, speaking with CoinDesk.

This balanced activity is consistent with XRP’s recent price behavior, which saw a dip to $1.61 early in the week, marking a five-month low, before quickly recovering to $2. A call option, which reflects the right to purchase at a set price, points to a bullish market outlook, while a put option would indicate a bearish position.

Meanwhile, the Solana (SOL) options market is seeing hedging activity, with traders targeting puts at strike prices ranging from $104 to $121. SOL briefly fell to $95 on Monday, driven by broader risk aversion linked to heightened U.S.-China tensions. However, the token has since rebounded to $115, with the options market responding to this volatility.

Despite global uncertainty, Dogecoin (DOGE) has attracted speculative interest, with traders looking to capitalize on potential upside. The cryptocurrency, which fell to 13 cents early this week, has since risen to 15.7 cents. Although DOGE remains more than 65% below its December peak of 48 cents, short-term options are becoming increasingly popular.

The most traded Dogecoin options are call options at strikes of 14.5, 15.5, 17.5, and 18 cents, all set to expire on April 13. These short-term speculative bets highlight the momentum-driven nature of the current altcoin options market.

“The flow of trades indicates that many are betting on quick price movements, likely linked to social media or upcoming events,” said Sischka. “Overall, the trend towards short-term, directional bets is bringing more focus to altcoin options.”

While altcoin options are growing in popularity, they still remain a fraction of the size of the bitcoin and ether options markets. These markets, primarily led by platforms like Deribit, continue to dominate with multi-million-dollar contracts being traded daily.

About The Author

ctleditor

See author's posts