Matrixport: As Ethereum Transaction Volume Declines, ETH Long Leveraged Positions May Face Liquidation Risk Due to Funding Rate Cost

September 10th: Matrixport put out a market insight indicating that recently, Ethereum treasury-based companies have become rather quiet. Their Net Asset Value (NAV) has been hovering around 1. This clearly shows that investors are not inclined to pay a premium for these stocks. Even Bitcoin treasury-based companies have witnessed a substantial drop in their net worth. Although this week's U.S. inflation data and the upcoming Federal Reserve interest rate meeting next week may bring some positive news to the crypto market, Ethereum's trading volume has sharply decreased from $122 billion to only $41 billion, while the open futures contracts have shown only a slight decline. This difference explains why the ETH price is still maintaining its level, but with the decreasing trading volume, some leveraged long position holders may soon be compelled to liquidate, especially as the high funding rate is making the cost of holding positions increasingly high.