On-chain options trading volume hits all-time high, sluggish lending yields may be the main driver

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

The reasons for the surge in trading volume remain inconclusive in the market. Possible factors include the annualized yield for USDT lending on Aave dropping to around 2%, reducing its attractiveness, as well as market expectations for Hyperliquid's upcoming HIP-4 market launch. Well-known DeFi trader Route 2 Fi recently posted on X, stating that the 2% annualized yield for USDT on Aave is no longer appealing, sparking widespread discussion in the community and reflecting that some users are actively seeking alternative investment channels with higher returns.