According to the latest report from blockchain analysis Glassnode, in the past 18 months, the crypto futures market has undergone structural changes, with the proportion of Bitcoin as margin dropped from 70% to a new normal baseline of around 40%.
In other words, about 60% of futures margin is now in stablecoins and fiat collateral, eliminating the additional volatility that comes as the value of the collateral changes with the futures contract.
This means that while futures leverage is high, the underlying margin appears to be more stable, reducing the impact of negative convexity compared to early 2021.
DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.