Options trading among smaller %Cryptocurrencies know as %Altcoins is heating up amidst the current market volatility, according to data from platform PowerTrade.
Traders and investors are reportedly hedging their bets and speculating on opportunities with cryptocurrencies such as %Dogecoin (CRYPTO: $DOGE), XRP (CRYPTO: $XRP), and %Solana (CRYPTO: $SOL).
Trading volume in XRP options soared to over $5 million U.S. in the last week as the market see-sawed between gains and losses.
PowerTrade says most of the options activity remains concentrated in short-dated expirations, which one would expect given the current level of volatility in crypto and stocks.
The options action suggests that investors are anticipating significant short-term price movements and are trying to capitalize on sharp price swings up and down.
Amid the current volatility, XRP’s price fell to a five-month low of $1.61 U.S. earlier this week only to bounce back to $2 U.S., according to market data.
Options traders bet on whether an asset such as a cryptocurrency’s price will rise or fall over a set period of time.
The current market ups and downs has enabled traders to bet on, and capitalize from, short swings in prices.
PowerTrade says the current options activity shows people are engaging in short-term “momentum trading,” which are bets on quick price surges among the likes of Dogecoin.
The price of Dogecoin is currently at $0.16 U.S., having declined 50% this year.
