In the latest data report from blockchain analytics company CryptoQuant, Binance currently has the best rate of gain as the crypto bull run prepares to begin.
Despite the general price drop in the past week, investors and market analysts still expect big gains for several digital assets in the next year in line with historical data. TThe average exchange rate provides an important feature ahead of this potentially very strong period that promises high market activity.
Binance, OKX Introduce Low Acquisition Rate as Other CEXs Show Potential Currency Risks
In the crypto market, the leverage ratio represents how much an exchange’s open interest is compared to its reserve assets. A higher leverage ratio means that there is more trading activity associated with reserves which increases the risk of liquidity problems in volatile market conditions.
Assessing the average exchange acquisition rate has grown significantly following the fall of the FTX exchange in 2022. The high ratio contributed significantly to the collapse of the exchange as there were not enough reserves (zero) to support the trading activity.
Therefore, monitoring leverage ratios is important in assessing the financial health of an exchange. During a bull market, additional trading activity can increase risk, especially if the exchange does not adequately return their portfolio positions.
With a crypto bull run on the horizon, CryptoQuant reports Binance has emerged among other exchanges with strong Bitcoin, Ethereum, and USDT related trading activity.
The Malta-based exchange boasts a low valuation ratio that has risen slightly from 12.8 in December 2023 to December 2024, despite a 2.6x increase in Bitcoin open interest (from $4.45 billion to $11.64 billion). Next to Binance, OKX, a relatively small exchange, has a low leverage ratio that reflects a strong risk management system.
However, other exchanges namely Gate.io, ByBit, and Derbit deliver the highest tune ratings of 106, 86, and 32, respectively. This report shows that Bitcoin and Ethereum’s Open Interest on this exchange is much higher than the reserves and may be responsible for liquidity problems in the long run.
Crypto Market Overview
At press time, the total crypto market is now valued at $3.26 trillion representing a 3.34% gain over the past day. Bitcoin remains the market leader with dominance rates of 57.1%. The first cryptocurrency is trading at $97,258 following a slight recovery from mid-week price declines after the US Federal Reserve announced a possible reduction of its four planned interest rate cuts in 2025 to two citing expected inflation.
Featured image from Webopedia, chart from Tradingview
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