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Data shows that the altcoin futures market has seen a decline in speculative engagement recently as open interest has plummeted.
Open interest in altcoins is now near cycle lows
In its latest weekly report, on-chain analytics firm Glassnode talked concerning the broad cooling off in speculation that has been seen in altcoins recently. The relevant metric here is “Open Interest,” which measures the entire variety of positions in a specific asset which are currently open across all derivatives exchanges.
When the worth of this metric increases, it implies that speculative activity surrounding the cryptocurrency is increasing. In general, higher leverage increases the likelihood that the market will turn into volatile, so such a trend can lead to larger price movements.
On the opposite hand, a decline within the indicator implies that the positions related to the asset are decreasing, either because investors reduce their appetite for risk or because exchanges force liquidations. Such a trend may very well be followed by a calmer market.
Here is the heatmap shared by Glassnode that shows how the open interest percentage change (30-day moving average) in Bitcoin and the assorted altcoins fluctuated over the past yr:
It looks like the proportion change within the metric was negative across the market | Source: The Week Onchain by Glassnode – Week 45, 2025
As shown within the chart above, the change in open interest within the cryptocurrency sector has been at significantly negative levels since mid-October, indicating that speculative positioning has declined.
Bitcoin has still managed to take care of a comparatively stable trend, but interest in altcoins has fallen sharply as open interest is now near cycle lows. “This pattern highlights a defensive stance amongst traders that prioritizes capital preservation over speculation,” the analyst firm noted.
Open interest is just not the one metric that suggests a slowdown in speculative activity; Another heatmap from the report points to the identical thing.
How the financing rate has modified out there in recent times | Source: The Week Onchain by Glassnode – Week 45, 2025
This heatmap shows the proportion change within the funding rate for Bitcoin and the altcoins. The funding rate refers back to the regular fee that traders within the derivatives market exchange with one another.
The chart shows that this metric has been experiencing a slowdown because the middle of the yr, an indication that investors have been cautious about betting on a specific direction. “Overall, sentiment around derivatives stays cautious and liquidity continues to say no across the board,” explained Glassnode.
The undeniable fact that the altcoin market saw a pointy drop in open interest while Bitcoin held up suggests that investor attention has shifted to the primary less dangerous digital asset.
Ethereum price
Ethereum, the most important altcoin, has been consolidating recently as its price remains to be around $3,500.
The coin's price has barely recovered because the crash | Source: ETHUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
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