The leverage rate of Ethereum has risen to 0.57, which is twice the leverage rate of Bitcoin
According to CoinDesk, data from CryptoQuant shows that the leverage ratio of Ethereum has risen to 0.57, a significant increase from 0.37 at the beginning of the last quarter of 2024. Meanwhile, Bitcoin's leverage ratio is at 0.269, its highest level since early 2023 but still far below the historical high of 0.36 set in October 2022.
The rising ratios indicate that traders are increasingly using leverage, suggesting a surge in risk-taking and market speculation behavior. Leverage allows traders to control larger positions on the market with relatively smaller pools of funds. The leverage ratio for Ethereum exceeding 0.5 indicates that there is a large amount of leveraged trading on futures markets compared to actual currency available in exchange wallets.
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