CryptoQuant analyst BaykusCharts said Binance’s Ethereum open interest is currently around $5.8 billion, roughly half of the more than $12 billion peak seen last summer. On the surface, that looks like a major deleveraging event. But the analyst argued that open interest is measured in U.S. dollars, while ETH itself has also fallen by about half over the same period. When converted into ETH terms, current open interest stands at about 2.5 million ETH, close to the roughly 2.5 million ETH seen at the peak.
BaykusCharts said the drop in dollar-denominated open interest is therefore mainly a price effect rather than evidence of broad position unwinding. On funding, the large positive premium seen in 2021 and early 2024 has disappeared. After several stretches of negative funding this year, the rate is now only slightly above zero, suggesting neither longs nor shorts are heavily crowded and that bulls are not paying a meaningful premium.
The analyst said the market still carries substantial leveraged ETH exposure, but lacks strong directional conviction. That reduces the risk of a one-sided liquidation cascade, while leaving room for a sharp acceleration if price breaks decisively in either direction.
CryptoQuant analyst BaykusCharts said Binance Ethereum open interest currently stands at about $5.8 billion, roughly half of the more than $12 billion peak recorded last summer.
At first glance, that may look like a large deleveraging move. BaykusCharts said that reading can be misleading because open interest is denominated in U.S. dollars, while ETH has also fallen by about half over the same period. Measured in ETH instead, current open interest is about 2.5 million ETH, close to the roughly 2.5 million ETH seen at the peak.
By that measure, the decline is being driven mainly by price rather than by traders closing positions on a large scale.
Funding has moved back near neutral
BaykusCharts also said the large positive premium seen in 2021 and in early 2024 has disappeared. After several periods of negative funding this year, the funding rate is now only slightly above zero.
That suggests neither side of the market is excessively crowded, and long positions are not paying a significant premium.
Leverage remains, but conviction is weak
The analysis said the market still holds substantial leveraged ETH exposure, but without strong directional conviction. That limits the risk of a one-sided liquidation chain, while also meaning that a decisive break in either direction could accelerate quickly.
BaykusCharts pointed to two signals to watch: rising prices combined with a sharp increase in funding would indicate crowded longs, while falling prices alongside rising open interest would point to growing short positioning.
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