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 BTC -0.22%-news/">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.
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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.
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