These Crypto Coins Carry The Most Leverage

Crypto leverage has been high across some particular digital assets in the space. Global open interest in the space remains at a reasonable point for now, but some assets boast significantly higher open interest to market capitalization ratios than others. Hence, this report will look at the leverage of these assets to see which ones hold high leverage.

Leading Altcoins in Leverage

There is no doubt that Bitcoin and Ethereum still have the largest share of open interest for global cryptocurrencies, but when it comes to the percentage of market capitalization required by open interest, it falls short when compared to other digital assets in the space.

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A large 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 much higher open interest to market cap ratio than Bitcoin and Ethereum.

For perspective, the open interest to market capitalization ratio of cryptocurrencies such as Bitcoin and Ethereum is 1.97% and 2.19%, respectively. Each of these assets has open interest at $15.5 billion and $8 billion. Other newly discovered popular cryptocurrencies boast a much higher percentage even though they only boast a small percentage of the global open interest in the crypto field.

Altcoins lead open interest to market cap ratio | Source: Arcane Research

The highest is SUSHI, which tops the fee with a whopping 10.09% interest-to-market ratio. The relatively new cryptocurrency is in second place at around 1.5%. YFI ranked second with 8.59%, while CRV and EOS took third and fourth places with 8.30% and 5.95%, respectively.

Metaverse Crypto Coins Instantly

The Metaverse Crypto coins made a stunning debut in the last quarter of 2021. The boom caused by Facebook’s announcement of rebranding to Meta continued into the new year, placing the metaverse tokens in the list of the most influential cryptocurrencies.

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Of the 16 coins featured in an Arcane Research report showing elevated leverage in some of the most popular cryptocurrencies, four metaverse coins appeared on the list. SAND, MANA, AXS and GALA all had an open interest on the market capitalization ratio at 3.29% and higher.

AXS topped the group with 4.44%, showing the highest percentage and MANA the lowest. Both signify traders using both MANA and AXS to hedge metaverse exposure.

Tier 1 tokens were not left out of the event even though both FTM and Near registered an open interest in higher market capitalization ratios than the big coins. FTM was 4.02%, while Near recorded 3.15% OI to market capitalization.

Total Cryptocurrency Market Cap Chart from TradingView.com

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