When we look at the altcoin market following last month’s crypto derivatives market shake-up, the OI -dominance ratio has reset to 1.2, down from 1.4. So, what does a drop in OI-dominance mean for altcoins? Open Interest (OI) tracks the total number of active derivative contracts—futures and perpetuals—that haven’t been settled. The OI-dominance ratio compares open interest to market cap. When this ratio is high (like 1.4), it often signals excess leverage and speculative froth—conditions that can trigger liquidation cascades during volatility. This is a positive sign, as it typically lowers the chances of another immediate liquidation wave. The total market cap for altcoins is hovering just above $1 trillion, which adds to the overall stability. Get early access to these and other key insights in this Crypto Market Positioning report by subscribing to Coinbase One—if you haven’t already ↓ coinbase.com/one