Altcoin Market Hits $222B, But Leverage Levels Raise Concerns

The altcoin market has reached its highest point in eight months, surpassing $222 billion in market capitalization. However, despite this surge, experts caution that an altseason is not yet confirmed.

Altcoin leverage remains below a historically significant risk threshold, according to Glassnode data. Typically, when the altcoin futures open interest relative to Bitcoin reaches parity or above, it signals a heightened risk of sharp liquidations.

The current level of -10% to -15% below parity indicates that traders have not yet piled into altcoin futures positions, keeping leverage relatively low.