Open Interest to Market Cap Ratio

Overview

This indicator calculates the percentage of an asset's market capitalization that is accounted for by the open interest in futures contracts of the asset. The ratio is calculated by dividing the total open interest in futures contracts for the asset (measured in USD) by the asset's market cap (also in USD), and then multiplying the result by 100 to get a percentage.

💡 How can I use it?

This ratio can provide insights into the level of speculation or hedging activity relative to the total market size of the asset. A higher ratio could suggest more significant futures trading activity relative to the size of the asset's market, which could indicate greater speculative interest or hedging needs.