TechFlow news, according to CoinDesk, data from CryptoQuant shows that Ethereum's leverage ratio has risen to 0.57, a significant increase from 0.37 at the beginning of the last quarter of 2024.
The rising ratio indicates that traders are increasingly using leverage, signaling a surge in risk-taking and market speculation. Leverage allows traders to control larger positions in the market with relatively smaller capital pools.
Ethereum's leverage ratio exceeding 0.5 suggests that there is substantial leveraged trading in the futures market compared to the actual amount of currency available in exchange wallets.
At the time of writing, Bitcoin's leverage ratio is estimated at 0.269, the highest level since early 2023, although still far below the all-time high of 0.36 reached in October 2022.
