Altcoin leverage has swelled to unprecedented ranges, setting the stage for violent swings if momentum cracks, in accordance with a July 23 report by Glassnode.
The report highlighted that the mixed futures open curiosity throughout Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) elevated from $26 billion at the beginning of July to $44 billion, representing a 69% surge.
Day by day will increase have stayed above the 2‑commonplace‑deviation mark for 12 straight classes, the longest run on file, suggesting that merchants are aggressively piling into leveraged bets.

Notably, that positioning is getting costly. Lengthy-side futures merchants have paid roughly $32.9 million in cumulative funding over the previous month, nearing the $42 million tab seen round Bitcoin’s March peak and nonetheless under the $70 million blow‑off in late 2024.
Elevated funding indicators conviction, but it surely additionally means a crowded commerce that may unwind rapidly if costs stall or reverse.
Rotating capital
Hypothesis is rotating away from Bitcoin (BTC). Ethereum’s share of mixture open curiosity has climbed to 38% towards Bitcoin’s 62%, its highest studying since April 2023, with solely 5% of days printing a bigger ETH share.
Perpetual quantity has tilted even additional. Ethereum has simply overtaken Bitcoin in quantity dominance for the primary time for the reason that 2022 cycle low, marking the biggest skew towards ETH on file.


The report famous that this shift displays merchants looking for larger beta as Bitcoin cools after a surge to an all-time excessive earlier this month, a transfer that pushed its realized capitalization above $1 trillion for the primary time earlier than value motion settled under the height.
Bitcoin nonetheless accounts for greater than 64% of complete crypto market worth, a focus that would cap altcoin momentum if BTC weakens.
Altcoins present appreciable weekly progress
Glassnode’s Altseason Indicator flipped constructive on July 9 and has stayed there, triggered by concurrent inflows to Bitcoin and Ethereum, rising stablecoin provide, and a momentum crossover in mixture altcoin market cap.
Altcoins added $216 billion in worth over the past two weeks, one of many largest greenback positive factors on file.
But, sector correlations present that the majority altcoins are transferring in lockstep with one another whereas decoupling from Bitcoin, a sample that always leaves the advanced system weak to fragility.
When leverage is stretched and belongings commerce as a single block, even modest shocks can cascade via compelled liquidations.
The report framed the setup plainly, stating that the altcoin rally is actual, however merchants shopping for the upside needs to be ready for prime incoming volatility resulting in vital draw back.