When the open interest (OI) in cryptocurrency derivatives exceeds its circulating market cap (MC), it typically signals that the market has entered a highly speculative state. Prices become driven by leverage rather than fundamentals, making them prone to extreme volatility and cascading liquidations.Core Metrics Explained Open Interest (OI) reflects the total number of unresolved derivative contracts, indicating market leverage and capital activity. Circulating Market Cap (MC) represents the...
