Ethereum leads with $16.1B open interest.
Potential for heightened market volatility.
Altcoin Open Interest Reaches Record $47B Peak
Glassnode reports that open interest across major altcoins has reached a record $47 billion driven by a surge in Ethereum, signaling increased leverage and risk in crypto markets.
This unprecedented spike poses heightened volatility risks as over 94% of altcoin supply is in profit, potentially leading to rapid market corrections and liquidations.
Open interest on major altcoins has reached an all-time high of $47 billion, indicating significant leverage within crypto markets. This record-level surge is driven primarily by an increase in Ethereum trading and a general uptick in altcoin prices.
Glassnode reports that the $47 billion milestone reflects heightened speculative activity and growing risk. Ethereum’s rally towards new highs is a substantial contributor, evidenced by its enormous $16.1 billion open interest in options markets.
Immediate effects include an increased potential for market volatility , as high leverage could lead to rapid price shifts in altcoins. Ethereum’s near peak price positions it as a key driver of this leverage surge.
The surge presents financial implications, raising concerns about liquidation risks if prices correct sharply. Over 94% of the altcoin supply is currently in profit, which could lead to rapid profit-taking and possible market turbulence.
Past cycles reveal that such high leverage often precedes volatility and rapid price declines. Understanding these patterns is crucial for market participants.
Potential outcomes include financial volatility stemming from leverage extremes and regulatory scrutiny over excessive risk exposure. Historical data points to possible dramatic market corrections, specifically among highly leveraged tokens such as Ethereum and XRP.
Rafael Schultze-Kraft, Co-founder & CTO, Glassnode, “Strong altcoin price action has fueled a surge in open interest across the top altcoins, which has climbed to a record $47B, increasing the potential for sharper, more reflexive price moves.” – Glassnode Insights, Aug 13, 2025