Binance ETH open interest USD has halved from its peak, while ETH-denominated open interest remains near its peak
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AT A GLANCE
Binance ETH open interest USD has halved in size, but when denominated in ETH it remains near last year’s peak.
Article
Analysis: Binance ETH open interest USD denominated in has halved from last year’s peak, but ETH denominated in remains near its peak
PANews October 28 reported that CryptoQuant analyst BaykusCharts posted that Binance’s Ethereum open interest is currently about 5800000000 USD, approximately half of last summer’s peak of 120 over USD. At first glance, this resembles large-scale deleveraging, but open interest is denominated in USD while ETH prices also fell by approximately half over the same period. Converted to ETH-denominated terms, current open interest is approximately 2500000 ETH, close to approximately 2500000 ETH at the peak. Therefore, the decline was mainly price-driven rather than caused by traders closing positions. Regarding funding rates, the substantial positive premiums at the beginning of 2021 and 2024 have disappeared. After several periods of negative funding rates this year, the current rate is only slightly above zero. Neither longs nor shorts are excessively crowded, and longs are not paying a significant premium. The analysis believes that the market still has substantial leverage ETH exposure, but lacks strong directional conviction. This limits the possibility of one-sided liquidations triggering...
PANews reported that CryptoQuant analyst BaykusCharts said Binance’s Ethereum open interest is currently about 5800000000 USD。
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The amount is approximately half of last summer’s peak of 120 over USD.
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Denominated in ETH, current open interest is approximately 2500000 ETH, close to approximately 2500000 ETH。
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The article said that the decline in the amount was mainly driven by the decline in ETH prices, rather than by traders closing positions.
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The current funding rate is only slightly above zero.
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The article said that neither longs nor shorts are excessively crowded, and longs are not paying a significant premium.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Open interest represents contract positions that have not yet been closed. When calculated in USD terms, the amount becomes smaller, but when converted to the number of ETH it remains near its peak, indicating that the number of contracts has not decreased significantly; a funding rate near zero indicates that neither longs nor shorts currently have a clear advantage.
Why it matters to readers
USD A decline in size does not necessarily indicate large-scale deleveraging;ETH-denominated open interest remains near its peak, indicating that the market still has substantial ETH contract exposure.
When examining the derivatives market, one should not look only at the USD amount; the number of ETH and the funding rate must also be considered to assess leverage and the degree of crowding on either side.
Risks and unknowns
The original text is truncated at the end, so the complete subsequent conclusion cannot be confirmed.
The data and analysis in the article are based on PANews’ account of the CryptoQuant analyst’s views.
Based on the current information alone, it cannot be confirmed whether subsequent ETH-denominated open interest will decline.
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Open Interest
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