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Ethereum Futures Open Interest Hits Record $20B
Ethereum futures hit a record open interest of $20.8B, signaling rising bullish momentum and interest in the derivatives market. Stay updated on market trends.
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Ethereum’s futures open interest across all exchanges has surged over 12% to a record $20.8 billion, reflecting bullish sentiment in the derivatives market.
What’s the scoop?
- Bullish Action: Positive funding rates, currently at 0.0374%, highlight a market skewed toward long positions, with traders betting on rising ETH prices.
- More Leverage: The estimated leverage ratio, which measures open interest divided by exchange reserves, has hit a record 0.40, signaling increased risk-taking as traders amplify returns through leverage.
- On the Rise: Ethereum’s open interest has grown 40% in the past four months, surpassing its previous high of $17 billion in May 2024.
Bankless take
Ethereum's derivatives market is booming, but the high leverage and dominance of long positions raises the risk of a long squeeze. While optimism is high, traders should be cautious of sudden volatility that could trigger a cascade of liquidations and a market correction.