In July 2025, Ether's volatility reached a record low due to strong institutional inflows and high open interest in the market.
Low Ether Volatility in July
In July 2025, Ether’s volatility was recorded at its lowest level since November, influenced by record institutional inflows and high open interest. Analysts point to this as an indicator of structural changes in the cryptocurrency market.
Changes in Bitcoin and Ethereum Dynamics
Key participants include Ethereum developers and institutional investors, who increased open interest to an all-time high. Significant ETH purchases by public companies signal a shift in sentiment in the cryptocurrency market. Market participants note that heightened institutional engagement may lead to reduced Bitcoin dominance.
Risks Associated with Open Interest
Surges in open interest often precede marked volatility, as shown during late 2021 and early 2022. Glassnode analytics indicate potential risks associated with increased leverage, which may lead to significant liquidations in the market.
The record low volatility of Ether, combined with increased institutional inflows and open interest, points to significant changes in the cryptocurrency market, which could impact future financial outcomes.
