The volatility game is here to stay: Polymarket has made a new gesture that may transform crypto trading.
Making money during crypto volatility has been a blockchain rollercoaster ride, though until recently, profit-making on such volatility was left to institutional investors and savvy traders. That was over Monday afternoon when Polymarket played a total counter to the script.
The decentralized betting system was launched at 4:13 PM EST with something different:
A product with which every seasoned trader as well as novice may participate in betting based on the volatility path of the market. It does not assume the question of whether Bitcoin will surpass $100K or what the Ethereum price will be. They were no more than pure, unsupported volatility speculation.
What then is happening here?
Polymarket has introduced Volmex, a partnership on implied volatility for 30 days. These are not your standard forecasts on prices. Rather, they will follow the amount of volatility the market will be exposed to by 2026.
In case the volatility of the stock hits or surpasses a specified limit by 11:59 PM on the 31st of December, the Yes option is awarded and yields.
Otherwise, the no alternative is decided.
You have purchased shares of Yes and placed a bet that there will be a more volatile market.
You are betting on the market being comparatively relaxing in case you have purchased no shares.
The important lesson to be learned is that you are not betting on whether or not the price will increase or decrease; you are just betting on how far it is going to deviate.
The figures are already speaking, speaking volumes. Since early trading indicates that the traders are not gliding easily. The likelihood of market volatility hitting between 40 and 80 percent this year is 35 percent. The market of Ethereum is developing similar price prospects, as there is a 50 percent chance of its volatility reaching at least 50 to 90 percent.
These aren’t random numbers. They possess actual meaning to the future. Bitcoin is oscillating around 88400 dollars, and most of the major tokens are in the negative. Meanwhile, the conventional safe-haven investments are soaring, and gold shot to a record high of over $5,000 per unit, and silver shot in one day to a record high of over 117.
So what is the importance of this to crypto?
The founder and CEO of Volmex Labs, Cole Kennelly, said that the BVIV and EVIV products of Volmex are a giant leap in the right direction.
These are crypto volatiles that have been introduced by Volmex and Polymarket.
The point he made was obvious: this is not a mere idea he made; this is the reality.
So what was happening until now?
There is an index in traditional markets referred to as VIX; the index is used to gauge the level of volatility in the market.
Having such a tool was not as easy with ordinary crypto traders.
Such an option is the first option to be available in crypto.
What are the benefits?
People are now able to trade complex derivatives in a simplistic manner; not only the big professionals, but now everyone has the ability to trade derivatives in a simple manner.
And one more (and the most important): it is not only about betting over a coin or an asset.
It offers novel methods of sharing your opinion regarding the market. You can use this to:
- Hedge your portfolio
- For risk management
- To make bets on the market without thinking of whether the market price will increase or decrease.
Simply put: Now you are able to trade not on the direction of the price, but on the mood and volatility of the market.
What is this perfect storm?
The timing is almost perfect. The Federal Reserve decision will occur on Saturday, and afterward, a flood of Big Tech earnings reports will take place, which traders perceive as the next large-scale catalyst. There are very few. Caution is in the air. The volatility that has developed within the zone since the inception of the US exchange-traded funds has assumed a negative correlation with the industry. The firm with a promising beginning in researching its ETF holdings also has unique behavior in the market.
The question is now: What is the impact of volatility trading on the Stratema participants, be it trading or new market ventures or marketing corporations? Once the traders can trade chaos and not named and green things, 2026 can reveal to us the state of the trading market that involves all the favorite doctors of Wall Street in the game.
There is one thing that is definite: the game has become much more interesting.
Disclaimer: This content is compiled from multiple public sources; we do not assume responsibility for accuracy.
