Foresight News reported, according to CoinDesk, that the Ethereum leverage ratio has risen to 0.57, a new all-time high, significantly up from 0.37 at the end of the last quarter of 2024. Meanwhile, the Bitcoin leverage ratio is 0.269, the highest level since the beginning of 2023, but still far below the historical high of 0.36 set in October 2022.
The rise in leverage ratios indicates that traders are increasingly using leverage, suggesting a surge in risk-taking and market speculation. Leverage allows traders to control larger positions in the market with a relatively small capital pool. The Ethereum leverage ratio exceeding 0.5 suggests that there is a significant amount of leveraged trading in the futures market compared to the actual currency available in exchange wallets.
