Altcoin Leverage Surpasses Bitcoin as Zcash Surges Past $1,200
The total open interest in altcoin perpetuals has surpassed that of Bitcoin for the first time since December 2024. This metric measures the dollar value of futures contracts still open, and indicates that traders are using leverage to chase smaller markets that move faster. The total market cap of altcoins outside the top 10 has risen above $200 billion, up more than 10% since September.
The increase in altcoin open interest is largely driven by Zcash (ZEC), which has seen its price surge 134% in 30 days to reach $1,200. This has resulted in significant losses for short sellers, including a trader on Hyperliquid who had over $25 million of his position liquidated.
The pattern this time around is similar to December 2024, when the crossover was followed by sharp corrections in mid-cap tokens while Bitcoin held relatively steady. However, there are three factors that could break the cycle: a funding-rate spike, a significant move in Bitcoin's price, or the continued absence of retail investors.