# Ethereum Futures Open Interest Hits Record $20B

*Author: Kazu Umemoto*
*Published: Nov 22, 2024*
*Source: https://www.bankless.com/de/read/ethereum-futures-open-interest*

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Ethereum’s futures open interest across all exchanges has surged over 12% to [a record $20.8 billion](https://www.theblock.co/post/327813/ethereum-futures-open-interest-all-time-high-bullish-momentum), reflecting bullish sentiment in the derivatives market.

## **What’s the scoop?**
- **Bullish Action**: Positive funding rates, currently at 0.0374%, highlight a market skewed toward long positions, with traders betting on rising ETH prices.
- **More Leverage**: The estimated leverage ratio, which measures open interest divided by exchange reserves, has hit a record 0.40, signaling increased risk-taking as traders amplify returns through leverage.
- **On the Rise**: Ethereum’s open interest has grown 40% in the past four months, surpassing its previous high of $17 billion in May 2024. 

## Bankless take
Ethereum's derivatives market is booming, but the high leverage and dominance of long positions raises the risk of a long squeeze. While optimism is high, traders should be cautious of sudden volatility that could trigger a cascade of liquidations and a market correction.
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