CryptoQuant User Guide
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  • šŸ”What is CryptoQuant
    • Introduction
      • How We Process Data
      • Why Trust CryptoQuant Metrics?
      • Why Market Driven?
    • Background Knowledge
      • What is On-Chain Data?
      • What are Entities?
      • What is a UTxO?
    • Our Product
  • šŸŽÆQuickStart
    • 5 Minute Data Guide
      • 3 Key On-Chain Metrics
      • 3 Key Market Metrics
      • 3 Key Indicators
      • Deriving Insights
    • 5 Minute Feature Guide
      • 1. Charting Overview
      • 2. Set Alerts
      • 3. Dashboards
      • 4. Quicktake
      • 5. Top 15 Pro Charts
        • Miner Selling
        • Whale Accumulation
        • Large OTC deals
        • Buying/Selling Pressure
        • Market Trend
        • Market Sentiment
        • Whale Dumping
  • šŸ“ŠCryptoQuant Metrics
    • Exchange Flows/Indicators
      • Exchange In/Outflow and Netflow
      • Exchange Reserve
      • Exchange to Exchange
      • Exchange Addresses Count
      • Exchange Transactions Count
      • Fund Flow Ratio
      • Exchange Supply Ratio
      • Exchange Inflow CDD
      • Exchange Inflow - Spent Output Age Bands
      • Exchange Inflow - Spent Output Value Bands
    • Miner Flows/Indicators
      • Miner Outflow
      • Miner to Exchange
      • Miners' Position Index (MPI)
      • Miner Supply Ratio
    • UTxO Data/Indicators
      • Profit and Loss (UTxO)
      • Profit and Loss (Supply)
      • Coin Days Destroyed (CDD)
      • Binary CDD
      • Mean Coin Age (MCA)
      • Sum Coin Age (SCA)
      • Sum Coin Age Distribution (SCA Distribution)
      • Spent Output Profit Ratio (SOPR)
        • aSOPR (Adjusted SOPR)
        • STH-SOPR
        • LTH-SOPR
        • SOPR Ratio (LTH-SOPR/STH-SOPR)
      • Net Unrealized Profit/Loss (NUPL)
      • UTXO Bands (Age)
        • UTXO Age Bands
        • Realized Cap - UTXO Age Bands
        • Realized Price - UTXO Age Bands
        • UTXO Count - Age Bands
        • Spent Output Age Bands
      • UTXO Bands (Value)
        • UTXO Value Bands
        • Realized Cap - UTXO Value Bands USD
        • UTXO Count - Value Bands
        • Spent Output Value Bands
    • Market Data/Indicators
      • Open Interest
      • Funding Rates
      • Estimated Leverage Ratio
      • Taker Buy Sell Volume/Ratio
      • Capitalization models
      • Realized Price
      • Exchange Whale Ratio
      • MVRV (Market Value to Realized Value) Ratio
    • Network Indicators
      • NVT Ratio
      • NVT Golden Cross
      • Puell Multiple
      • Stock to Flow Ratio
      • Stock to Flow Reversion
      • NVM Ratio
    • Stablecoin Exchange Flows/Indicators
      • Stablecoin Network Data
      • Stablecoin Exchange In/Outflow & Netflow
      • Stablecoin Exchange Reserve
      • Stablecoin Exchange Addresses Count
      • Stablecoin Exchange Transactions Count
      • Stablecoins Ratio
      • Stablecoin Supply Ratio (SSR)
    • Fund Data & Premium
      • Grayscale Bitcoin Trust (GBTC)
        • GBTC Digital Asset Holdings
        • GBTC Premium or Discount
      • Grayscale Ethereum Trust (ETHE)
        • ETHE Digital Asset Holdings
        • ETHE Premium or Discount
      • Coinbase Premium
      • Korea Premium Index
      • Bank Supply Ratio
  • šŸ› ļøWeb3 Analytics Tool
    • Overview
    • Cohort Data Navigation
    • Query Data Navigation
    • How to Use(Query Tool)
      • 1. DateTime Aggregation
      • 2. Query Block - Metric
      • 3. Query Block - Where
      • 4. Query Block - Group by
      • 5. Query Block - Join
      • 6. Query Block - Order by
      • 7. Save and Run
      • 8. Editing the Result
      • 9. Visualization
        • Table
        • Pie
        • Serial
        • Number
        • Pivot Table
  • šŸ“ŒReference
    • FAQ
    • Community Guidelines
    • Community Links
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On this page
  • Definition
  • Interpretation
  • By value itself
  • By examining trend
  • Link to Our Data

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  1. CryptoQuant Metrics
  2. Market Data/Indicators

Estimated Leverage Ratio

Estimated Leverage Ratio (ELR) is defined as the ratio of open interest divided by the reserve of an exchange

Definition

Estimated Leverage Ratio (ELR) is defined as the ratio of open interest divided by the reserve of an exchange.

EstimatedĀ LeverageĀ Ratio=OpenĀ InterestAmountĀ ofĀ Reserve\text{Estimated Leverage Ratio} = \frac{\text{Open Interest}}{\text{Amount of Reserve}}EstimatedĀ LeverageĀ Ratio=AmountĀ ofĀ ReserveOpenĀ Interest​

Interpretation

Estimated Leverage Ratio indicates how much leverage is used by users on average.

ELR for a derivative exchange tells us how much leverage is used by users on average. This information measures traders' sentiment whether they take a high risk or low risk.

By value itself

It could be interpreted as the degree of leverage of the market

  • High: Over Leveraged Market+ Possible Volatility

  • Low: Low Leveraged Market

By examining trend

It shows the sentiment or tendency of total investors' urge to use leverage.

  • Increasing trend: Holding More Leverage

    Increasing in values indicates more investors are taking high leverage risk in the derivatives trade.

    Also, if ELR value is high compared to the last couple of days, it indicates traders are quite confident in their positions.

  • Decreasing trend: Taking off Leverage

    Decreasing in values indicates more investors are taking off leverage risk in the derivatives trade.

    Also, if ELR value is low compared to the last couple of days, it indicates traders are changing their views or finishing their positions.

Link to Our Data

PreviousFunding RatesNextTaker Buy Sell Volume/Ratio

Last updated 1 year ago

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šŸ“Š
Estimated Leverage Ratio in CryptoQuant Live Chart
Estimated Leverage Ratio in CryptoQuant Data API docs