According to BlockBeats, on January 3, according to CryptoQuant tracking data, Ethereum's rough leverage ratio climbed to a new high of 0.57 on Wednesday, a sharp increase from 0.37 at the beginning of the last quarter of 2024. The ratio is calculated by dividing the cumulative open interest of standard futures and perpetual futures contracts listed globally by the total number of ETH in wallets related to futures trading platforms. The increase in leverage ratios indicates that traders are increasingly using leverage, and risk-taking and market speculation have surged.
This leverage level is much higher than Bitcoin’s leverage, which at press time is 0.269, the highest level since early 2023, but still well below the all-time high of 0.36 reached in October 2022. CryptoQuant predicts that Ethereum will experience twice the price volatility of Bitcoin in the near future.
