On-chain options trading volume hits a record high, with sluggish lending yields possibly being the main driver

ChainCatcher reports that the on-chain options market has reached a record high in trading volume over the past two weeks, with $44 million in the first week of February and $28 million in the last week of January. Currently, over 80% of the trading volume is concentrated on the Ithaca and Derive protocols, which handled $26 million and $11 million respectively last week, while the third-place Overtime recorded only $2 million.

The reasons for the surge in trading volume remain uncertain. Possible factors include the decline of USDT lending annualized yields on Aave to around 2%, reducing its attractiveness; and market anticipation for the upcoming HIP-4 market launch by Hyperliquid. Noted DeFi trader Route 2 Fi recently posted on X platform that the 2% USDT annualized yield on Aave has become unappealing, sparking widespread discussion in the community and indicating that some users are actively seeking alternative investment channels with higher returns.