According to TechFlow, CoinDesk reported that according to CryptoQuant data, Ethereum's leverage ratio rose to 0.57, a sharp increase from 0.37 at the beginning of the last quarter of 2024. At the same time, Bitcoin's leverage ratio was 0.269, the highest level since early 2023, but still far below the historical high of 0.36 set in October 2022.
The rising ratio indicates that traders are increasingly using leverage, indicating a surge in risk-taking and market speculation. Leverage enables traders to control larger positions in the market with a relatively small pool of capital.
The leverage ratio for Ethereum is over 0.5, which shows that there is a lot of leverage trading in the futures market compared to the currency actually available in exchange wallets.
As of the time of writing, the leverage ratio of Bitcoin is estimated at 0.269, the highest level since the beginning of 2023, but still well below the historical high of 0.36 reached in October 2022.
