Zcash Leads Altcoins Past Bitcoin in Leverage for First Time Since 2024

The open interest in altcoin perpetual futures has surpassed that of Bitcoin for the first time since December 2024. This shift is significant because it preceded sharp corrections in mid-cap tokens during the last instance, with Bitcoin holding relatively steady.

Altcoins outside the top 10 have seen a market cap rise above $200 billion, up over 10% in September. Zcash has been at the forefront of this movement, with open interest reaching a record $2.4 billion and its price surging 134% in 30 days.

While some traders are profiting from this trend, others have taken on significant losses. A prominent trader's $25.7 million short position is now underwater due to Zcash's rapid price increase. A second trader who had gone 26 trades in a row without losing faces liquidation at $1,317.

Experts note that this shift could be fragile and may break down if funding rates spike or Bitcoin sees significant price movements. The crypto fear and greed index reads 71, indicating a mix of optimism and caution.