altcoin king Ethereum $3,440.9‘s Ether (ETH) Bitcoin 
$96,525.2Despite its (BTC) dominance attracting institutional attention, it has become a favorite of investors seeking high returns through leveraged transactions. According to data provided by CryptoQuant, ETH’s estimated leverage ratio broke a record at 0.57 on Wednesday. The ratio was at 0.37 at the beginning of the last quarter of 2024, and this rapid increase in the leverage ratio reveals the increase in investors’ risk appetite.
How Do Leveraged Transactions Affect Investors?
Leveraged transactions It allows investors to take larger positions with less capital. For example, with a leverage ratio of 10:1, a position of 10 thousand dollars can be opened with a collateral of 1000 dollars. However, this mechanism increases losses as much as it increases profits.
Especially when harsh market movements contradict leveraged positions, forced position closure (liquidation or liquidation) occurs due to insufficient collateral. This situation significantly increases market-wide volatility.
On the other hand, ETH’s leverage ratio exceeds 0.5 futures marketIt reveals that the speculation in This rate BitcoinThis corresponds to almost twice the leverage ratio of 0.269. However, although the leverage rate in Bitcoin has reached its highest level since the beginning of 2023, it remains below the record level of 0.36 in October 2022.
Volatility in Ethereum’s Price Increases
The high leverage ratio in Ethereum indicates that price movements may be more volatile compared to Bitcoin. Analysts, ETHIt shows that with the current leverage level, it is possible to experience sharp fluctuations in price volatility. Because altcoin The volatility rate in the king’s price is expected to double that of Bitcoin.
While leveraged transactions in ETH offer both high gain and loss potential, especially altcoin marketcandidate to shape the dynamics of Therefore, developments in this field need to be followed closely.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
