[Analysis] "Ethereum Estimated Leverage Ratio Hits All-Time High... Volatility Concerns"

Ethereum (ETH) estimated leverage ratio has reached an all-time high.

On the 2nd (local time), CoinDesk reported, "Ethereum's estimated leverage ratio has hit an all-time high of 0.57," noting that it has significantly increased compared to early Q4 last year (0.37). It continued, "An estimated leverage ratio exceeding 0.5 indicates that there is significantly high leverage trading compared to the actual coins in exchange wallets," adding, "This suggests an increase in risk appetite and speculative tendencies among Ethereum traders, as well as the potential for sharp price fluctuations."

Furthermore, the media outlet predicted, "Ethereum's leverage ratio is significantly higher than Bitcoin (BTC), suggesting that Ethereum may experience more than double the price volatility compared to Bitcoin." According to CryptoQuant, Bitcoin's current estimated leverage ratio is 0.269, the highest since early 2023, but it does not reach the all-time high of 0.36 recorded in October 2022.