Despite the price recovery, Atrium’s professional retailers remain pessimistic



According to data from derivatives markets, professional traders are not making much effort to restore Atrium prices, and the mood in futures markets is largely down.

According to the Kevin Telegraph, the price of the Atrium reached $ 3,280 on February 10 (February 21), a 51.5% improvement over the bottom of $ 2,160 on January 24 (February 4). This is the lowest price for the last 6 months and partly shows the reason for the decline in the feelings of traders in the derivatives markets.

However, Atrium’s annual premium futures fell to 2.5 percent yesterday, although they rose 11 percent to $ 2,700, a downward trend. These conditions show investor skepticism about the change in the mechanism of the Atrium network to prove the shares.

The long-awaited update of the Atrium Network, which is expected to significantly increase Atrium’s processing capacity with the help of Sharding, should be implemented in late 2022 or early 2023.

Long-term analysis of atrial function makes analysts feel better; Because this digital currency is currently at 45% of its $ 4870 record.

In addition, the adjusted value of the total locked-in capital in the Atrium Network Defy protocols remained at 42.87 million Atrium despite the price adjustment.

Total value of the concluded capital of the Atrium network
Total value of the concluded capital in the Atrium network.

As shown in the photo above, the value of Atrium’s closing capital increased by 16.5 percent in the three months, showing growth in the decentralized financial sector (DeFi) and the NFT market.

However, due to the slowdown in the renewal of the network and the deteriorating global situation, professional traders are becoming frustrated and anxious, and this is a feeling that is confirmed by various indicators in the derivatives market.

Atrium’s futures market reached its lowest level in seven months

Micro-investors usually avoid trading in quarterly futures due to fixed settlement dates and differences in money market prices. However, the main advantage of this type of contract is the lack of fluctuation in the funding rate (Funding Rate) and therefore the activity of arbitration platforms and professional traders is increasing.

The term futures market capitalization rate refers to the amount of commission that long-term holders (those who believe prices are rising) and short-term holders (those who believe prices are falling) have to pay to keep the market afloat. balance.

These futures contracts are usually traded at a small price difference compared to the current market, indicating that sellers expect higher profits to maintain long-term trading positions. This situation, which is not limited to the digital currency market, is known as contango; That is, conditions under which prices in futures markets are higher than in current markets.

Annual premium for 3-month futures contracts of Atrium
Annual premium for 3-month futures contracts of Atrium.

Futures are usually traded at an annual premium of 5 to 15 percent under normal market conditions. However, as shown in the chart above, Atrium’s annual premium fell to a very low 2.5 percent from 20 percent on October 21.

Although the general trend of the index remains positive, it fell to its lowest level in the last 7 months. The fall in the price of Atrium to $ 2,300 on February 24 caused bearish sentiment to captivate investors, and even a 10% improvement yesterday was not enough to change the general trend.

At the moment, the data show few signs of buyers trying to regain market control. If that were the case, and buyers had to work harder, the Atrium futures premium would be positive after such a jump in prices.

The publication Despite the recovery in price, professional atrium traders remain pessimistic, appeared for the first time in digital currency.

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