Important points
- Binance's leverage ratio is at a 30-day low, indicating increased stability in the overall crypto market.
- The exchange's revised collateral and leverage rules forced out high-risk positions and reduced the risk of liquidation during periods of volatility.
Binance's leverage ratio has decreased recently, indicating less speculative positioning and slightly more market stability on the exchange.
This transition follows updates to Binance's collateral ratios and leverage tiers, which are designed to curb extreme leverage and lower liquidation risk during periods of volatility.
Research and market data suggest that high leverage can exacerbate Bitcoin's volatility during economic downturns, so the current deleveraging is considered a stabilizing development and fits with a broader trend towards a more mature and risk-aware crypto market.
