LMAX Digital volume has been picking up as we see more direction in the market. Total notional volume for Monday came in at $777 million, 16% above 30-day average volume.

Bitcoin volume printed $478 million on Monday, 16% above 30-day average volume. Ether volume came in at $200 million, 15% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,442 and average position size for ether at 5,067.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $1,788 and $148 respectively.

On Monday, we talked about the many macro drivers influencing this latest move higher in the crypto space. Today, we highlight yet another source for this wave of renewed demand.

That story revolves around Terra’s plan for a $10 billion allocation of bitcoin. Since the end of January, Terra has already confirmed it has bought over $1 billion in bitcoin, including $135 million in 4 purchases on Monday.

Terra is the organization behind one of the world’s largest stablecoins. That stablecoin is known as UST. The CEO announced earlier this month that the stablecoin would be backed by a reserve of bitcoin.

This is important for the space, as it translates to less reliability on the US Dollar.

The access to bitcoin will reinforce Terra’s ability to maintain its US Dollar peg, particularly in times of excessive short-term demand when investors are looking for UST redemptions.

It’s also worth adding that we have been hearing of additional demand into Tuesday on the story of climate groups revealing a change in the way bitcoin is mined that could reduce energy consumption by 99%.