Highlighting Risk: These Crypto Coins Carry The Most Leverage
January 12 2022 - 6:00PM
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Crypto leverage has been high across some particular digital assets
in the space. Global open Interest in the space still sits at a
reasonable point currently, but some assets boast significantly
higher open interest to market cap ratios than others. Thus, this
report will be examining the leverage for these assets to see which
ones carry elevated leverage. Altcoins Lead In Leverage Bitcoin and
ethereum no doubt still command the largest share of the global
crypto open interest but when it comes to the percentage of their
market cap which their open interest commands, it falls short when
compared to other digital assets in the space. Related Reading
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Trees A good number of these altcoins have found popularity in
recent months, spending less time in the spotlight than their
beloved counterparts bitcoin and ethereum. However, these digital
assets have shown a far higher open interest to market cap ratio
than bitcoin and ethereum. For perspective, the open interest to
market cap ratio for crypto coins such as bitcoin and ethereum sit
at 1.97% and 2.19% respectively. Each of these assets has an open
interest at $15.5 billion and $8 billion. Other cryptocurrencies
with newfound fame boast of a much higher ratio despite only
boasting a small percentage of the global open interest in the
crypto space. Altcoins lead open interest to market cap ratio |
Source: Arcane Research The highest of these is SUSHI, which leads
the charge with a whopping 10.09% open interest to market cap
ratio. The relatively new cryptocurrency leads the second-highest
by almost 1.5%. YFI placed second at 8.59%, with CRV and EOS at
third and fourth position with 8.30% and 5.95% respectively.
Metaverse Crypto Coins On The Come-Up Metaverse Crypto coins had an
incredible come-up in the last quarter of 2021. 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.
Related Reading | ARK Invest CEO Cathie Wood On What Will
Drive Bitcoin Correction Of the 16 coins featured in an Arcane
Research report showing elevated leverage in some of the most
popular altcoins, four metaverse tokens made the list. SAND, MANA,
AXS, and GALA all had an open interest to market cap ratio at 3.29%
and higher. AXS led the pack with a 4.44% ratio, showing the
highest and MANA with the lowest. Both of these are indicative of
traders using both MANA and AXS to hedge their metaverse exposure.
Layer 1 tokens were not left out of the action though as both FTM
and Near recorded open interest to market cap ratios higher than
that of the large cap coins. FTM’s ratio sat at 4.02%, while Near
recorded a 3.15% OI to market cap ratio. Crypto total market
recovers above $2 trillion | Source: Crypto Total Market Cap on
TradingView.com Featured image from Crypto News, charts from Arcane
Research and TradingView.com
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