Binance's Ether Futures See Lowest Open Interest Since July 2022
Don't ready too much into the move, said one observer, calling it a typical position reset.
The U.S. dollar value locked in the active ether perpetual futures contracts listed on Binance has tanked to a 13-month low.
The so-called notional open interest was $1.41 billion at press time, the lowest since July 2022, according to data tracked by Coinglass. Binance is the world's largest digital asset exchange by trading volume and by open interest in both spot and futures markets.
The notional value in ether futures on Binance has declined by 35% in one week, consistent with the market-wide leverage washout seen since last Thursday; the notional open interest in the exchange's bitcoin perpetual futures has slid 17% to $3.02 billion over that same period.
"On the bright side, this excess leverage in the derivatives market has now been flushed out of the system," Reflexivity Research said in a market weekly market update.
Ether's global estimated leverage ratio, calculated by dividing the dollar value locked in the active open perpetual futures contracts by the total number of coins held by derivatives exchanges, has declined from a multi-month high of 0.28 to 0.22. Bitcoin's ratio has slid from 0.27 to 0.21, the lowest since May, according to data tracked by South Korea-based analytics firm CryptoQuant.
It shows that the degree of leverage deployed to magnify returns is significantly lower than a week ago. It also means a lower probability of liquidations-driven volatility in the coming weeks.
"Don't read much into the recent move; it was exceptionally low liquidity + leverage liquidation," lan Solot, co-head of digital assets at Marex Solutions, said in an email. "Technicians will draw lines and commentators will peddle their preconceived views. But it was a typical positioning reset, especially for BTC. Moving on."
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dogecoin News Today: Dogecoin ETFs Indicate Growing Interest from Institutions, Yet Can the Meme Coin Demonstrate Its Value?
- U.S. Dogecoin ETFs (BWOW, GDOG) launched amid mixed market reactions, with GDOG's $1.4M debut volume far below $12M forecasts. - Both ETFs hold actual Dogecoin but lack 1940 Act registration, exposing investors to liquidity risks and regulatory uncertainty. - Market analysts cite Dogecoin's volatility, meme origins, and descending price patterns as barriers to mainstream adoption. - Fee structures (0.34-0.35%) and regulatory ambiguity highlight challenges in monetizing meme coins despite institutional in
Australia's Cryptocurrency Reform Strikes a Balance Between Fostering Innovation and Safeguarding Investors
- Australia introduces 2025 Digital Assets Framework Bill to regulate crypto exchanges and custody providers under stricter licensing and ASIC oversight, aiming to protect investors and align with traditional finance standards. - The bill classifies operators into "digital asset platforms" and "tokenized custody platforms," with exemptions for small operators under A$5,000 per customer and A$10M annual transactions. - An 18-month transition period and potential A$24B annual productivity gains are expected,
ZK Pumping: How Infrastructure Grants Propel Expansion in Real Estate and Technology Sectors
- Webster , NY's $9.8M FAST NY grant transforms a 300-acre Xerox brownfield into a high-tech industrial hub via infrastructure upgrades. - The project reduces development barriers, attracting $650M private investments like the fairlife® dairy plant and boosting property values by up to 30%. - Tech integration, including blockchain-based traffic systems, positions Webster as a model for linking physical and digital infrastructure in industrial growth. - "ZK Pumping" demonstrates how strategic infrastructure
Bitcoin Updates Today: Assessing Bitcoin's Support Zones—Will Institutional Investments Surpass Federal Reserve Ambiguity?
- Bitcoin faces critical $84,000–$86,000 support after 31% November selloff, with institutional inflows and whale accumulation signaling ongoing bull cycle resilience. - JPMorgan upgrades miners like Cipher Mining amid rising HPC demand, while Fed rate-cut odds hit 71% for December, potentially boosting risk assets. - On-chain data shows historic BTC transfers to long-term holdings, contrasting with Binance's delistings and regulatory-driven liquidity management efforts. - 2025–2030 price forecasts range $
Trending news
MoreCrypto prices
More
