Ether Leverage Surges: Traders Eye Higher Returns Amid Rising Risk

Ether Leverage Surges: Is the Market Ready for More Volatility?

Ethereum comes out as the preferred main token for traders aiming to optimize returns through leverage, even though Bitcoin captures the attention of institutional narratives. According to statistics recorded by analytics firm CryptoQuant, Ether’s projected leverage ratio, which gauges the level of leverage used by traders, increased significantly from 0.37 at the beginning of the final quarter of 2024 to a new high of 0.57 on Wednesday.

An increasing ratio indicates a rise in risk-taking and market speculation by implying that traders are utilizing leverage more frequently. With a very modest amount of capital, traders can control larger market positions due to leverage.

Ether Futures Speculation Grows as Leverage Ratio Tops 0.5

In comparison to the number of real currencies in exchange wallets, Ether‘s leverage ratio of more than 0.5 indicates that a sizable amount of leverage trading is taking place in the futures market. This degree of leverage is significantly more than that of Bitcoin, which, as of this writing, has the highest estimated leverage ratio since early 2023 (0.269), but it is still far behind the record high of 0.36 set in October 2022. Therefore, it shouldn’t come as a surprise if ether’s price volatility doubles that of bitcoin soon.

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