CryptoQuant: "Binance Holds the Most Stable Leverage Ratio"

Source=CryptoQuant

Global cryptocurrency exchange Binance has recorded the most stable leverage ratio.

On the 20th (local time), CryptoQuant stated on X that "Binance's leverage ratio (total reserve ratio against open interest) is the lowest and most stable among major exchanges," noting that "it was 12.8 last December and 13.5 this December." They further commented, "A high leverage ratio was a major factor in the collapse of FTX," and evaluated that "despite Bitcoin's open interest increasing from $4.45 billion to $11.64 billion, maintaining low leverage demonstrates Binance's ability to handle cascading liquidations."

Furthermore, CryptoQuant mentioned, "OKX also maintained a low leverage ratio," but reported that "Gate.io, Bybit, and Deribit recorded high leverage ratios of 106, 86, and 32, respectively." They added, "These exchanges have Bitcoin open interest exceeding or nearing their reserves," and explained that "a similar pattern was observed with Ethereum open interest."