Ethereum’s Estimated Leverage Ratio on Binance has reached a record high of 0.65, up from the 0.20-0.30 range during the 2022 bear market. This increase comes with expanding open interest and shrinking ETH reserves on Binance, creating an environment where small price movements can trigger larger-than-normal liquidation cascades. Meanwhile, Purpose Investments staked 42,000 ETH, worth approximately $80 million, representing 36.6% of its total holdings of 114,900 ETH, reducing liquid supply while strengthening network security. Additionally, the Ethereum Foundation transferred 578.38 ETH (approximately $1.08 million) to a self-custody wallet, a move aligned with treasury management rather than active distribution. This institutional activity contrasts with rising leverage on derivatives, suggesting strong long-term conviction despite increased short-term volatility risk.
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