The crypto leverage rate has been very high for some digital assets. The space’s global open interest is at an acceptable point, although some assets currently have significantly greater open interest to market capital ratios. To find out which assets have elevated leverage, the report will examine their leverage.
Altcoins Lead In Leverage
While Bitcoin and Ethereum still hold the most crypto-related open interest, their market capital is much lower than other digital assets.
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These altcoins are gaining popularity and spending less time on the news than bitcoin or ethereum. These digital assets show a much higher open interest to the market than bitcoin or ethereum.
To put it in perspective, the market cap to open interest ratio for crypto coins like Bitcoin and Ethereum is 1.97% and 2.09%, respectively. These assets have open interests of $15.5 billion to $8 billion, respectively. While cryptocurrencies of new fame have a lower ratio, they still represent a very small fraction of the worldwide open interest.
Source: Arcane Research| Source: Arcane Research
SUSHI is the most popular with 10.09% open market interest to market capital ratio. This relatively recent cryptocurrency is the top-ranked, with almost 1.5%. YFI ranked 2nd at 8.59% with CRV at 3rd and EOS 4th at 8.30%, and 5.95% at 5th and 6th.
Metaverse Crypto Coins Available On The Come Up
The last quarter 2021 saw a remarkable rise in popularity for Metaverse Crypto Coins. The boom caused by Facebook’s announcement that it was rebranding to Meta has continued on into the new year, placing the top metaverse tokens in the list for cryptocurrencies with the most elevated leverage.
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Four metaverse tokens were among the 16 altcoins that Arcane Research found had high leverage. SAND, MANA and AXS all showed open interest to market caps of 3.29% or higher.
AXS led with a ratio of 4.44%, MANA had the lowest and AXS with the highest. This is indicative of traders who use AXS and MANA to hedge metaverse exposure.
FTM and Near both recorded open interest market cap ratios that were higher than those of large-cap coins. Layer 1 tokens weren’t left out though. FTM’s ratio sat at 4.02%, while Near recorded a 3.15% OI to market cap ratio.
Source: Crypto Total Market Cap on TradingView.com| Source: Crypto Total Market Cap on TradingView.com
Featured image taken from Crypto News. Also charts from Arcane Research and TradingView.com.