Ethereum (ETH) Overtakes Bitcoin (BTC) on Hyperliquid..."Major Reversal in Futures Market"

▲ Ethereum (ETH)/AI Generated Image

Ethereum (ETH) has caused a seismic shift in the derivatives market, overtaking Bitcoin (BTC) after finalizing the schedule for a hard fork that includes major network performance improvements. This comes amidst a surge in perpetual futures positions on decentralized exchanges, with analysis suggesting that key technological upgrades, set to dramatically boost transaction speed and scalability, have stimulated buying sentiment among institutions and traders.

According to virtual asset specialized media outlet Coingape on September 29 (local time), the Ethereum Foundation announced that the Glamsterdam upgrade, its next-generation network hard fork, will be officially activated on the Sepolia testnet on October 6. Immediately after the announcement of this schedule confirmation, a reversal occurred on the decentralized perpetual futures trading platform Hyperliquid, where the open interest in Ethereum perpetual futures surpassed that of Bitcoin.

The Glamsterdam upgrade is considered a critical gateway for extensively overhauling the processing performance of the Ethereum base layer after The Merge. It will introduce EIP-7732, which enhances the decentralization of the block creation structure, and State Access Lists (EIP-7928) technology, which resolves execution bottlenecks. Through these, infrastructure improvements are expected to significantly increase transaction processing speed (TPS) per second and dramatically lower gas fees.

This schedule confirmation serves as a technological stepping stone towards the future Hegotá upgrade and the establishment of a quantum-resistant cryptography system. The Ethereum Foundation plans to initiate mainnet operation in Q4 2026 after successfully completing testnet verification. The aim is to proactively expand network processing capacity amid surging demand for derivatives in the DeFi ecosystem and increasing transaction volumes for Real World Asset (RWA) tokenization.

Historically, Ethereum has shown a distinct pattern of proactive rallies, ranging from 20% to 40%, in the 6 to 8 weeks leading up to major upgrades. This is supported by statistics showing approximately a 35% increase before The Merge in September 2022, about a 40% increase just before the Shanghai upgrade in April 2023, and roughly a 20% increase just before the Dencun upgrade in March 2024. The surge in Ethereum's open interest, surpassing Bitcoin in the derivatives market, is interpreted as an influx of smart money aiming to replicate these past upgrade rallies.

Even amidst short-term macroeconomic volatility, the visualization of the technological roadmap is intensively absorbing liquidity in the Ethereum futures market. Starting with the testnet activation on October 6, market attention is focused on whether the Glamsterdam upgrade can successfully settle on the mainnet and lead to an expansion of market share compared to Bitcoin.

[Key Article Summary]

-The Ethereum Foundation has confirmed that the Glamsterdam upgrade will be activated on the Sepolia testnet on October 6.

-Immediately after the schedule announcement, Ethereum (ETH) surpassed Bitcoin (BTC) in perpetual futures open interest on Hyperliquid.

-Coupled with past statistics showing 20-40% price increases just before major upgrades, expectations for mainnet activation in Q4 have risen.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*