Open Interest Tracks Price, Leverage ProxyAug 19, 2021
ETH’s structure looks fairly similar to BTC’s, but the difference between price and open interest growth is a little wider. ETH closed yesterday at $3310 per coin with $8.25 bn in open interest. The first time ETH hit $3300, in May 2021, open interest was just over $10 bn, and trading volume was much, much higher.
In general, lower leverage implies a healthier market with less fuel for liquidations and stop hunts.