Future’s Open Interest (OI) is the total amount of funds allocated in open futures contracts.
While the Estimated Leverage Ratio is defined as the ratio of the OI in futures contracts and the balance of the corresponding exchange.
Quick Take
Almost 250k Bitcoin has been wiped in futures OI in the past three months since the FTX collapse.
A decrease in futures volume is healthy for accumulating and continuing a higher price.
As futures decrease, a lower likelihood of liquidation cascades, so less volatility
Futures Open interest: (Source: Glassnode)Estimated Leverage Ratio: (Source: Glassnode)