Sui Coin Derivatives Market Analysis ๐Ÿค‘

Sui Coin, originating from Meta's (formerly Facebook) Diem blockchain project, has positioned itself as a fast and scalable Layer 1 blockchain. Letโ€™s dive into the recent derivatives market data for Sui to better understand its current trends.

1. Open Interest


Open Interest represents the total number of unsettled futures contracts at any given time. Itโ€™s a great indicator of market activity and engagement.

Currently, Sui's Open Interest stands atย $623.8 million, reflecting a slightย 2% decrease in the past 24 hours. This suggests some liquidation activity, potentially signaling a reduction in positions.


2. Funding Rate


The Funding Rate is a fee paid between long and short traders in perpetual futures contracts, balancing the market sentiment.

On Binance, the Funding Rate for Sui is atย 0.0165%ย (positive), meaning long traders are paying short traders. This indicates a market leaning towards bullish sentiment, with more investors expecting Sui's price to rise.


3. Liquidations

Liquidations occur when traders fail to maintain their margin requirements, forcing the closure of their positions.

In the past 24 hours,ย $5.4 millionย worth of positions were liquidated. Of this,ย $4.7 millionย were long positions andย $712,600ย were shorts. The higher liquidation of long positions suggests a recent dip in price, triggering these closures.


4. Long/Short Ratio

The Long/Short Ratio measures the percentage of long and short positions in the market.

Sui's ratio currently sits atย 2.48, withย 71.27% long positionsย andย 28.73% short positions. This reflects strong optimism among traders about Suiโ€™s price performance.


Sui Coinโ€™s derivatives market highlights a bullish outlook with a majority of long positions and positive funding rates. However, the significant liquidation of long positions signals that short-term volatility remains a concern. For investors, itโ€™s essential to monitor these metrics closely to navigate market fluctuations effectively.

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