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Matrixport: As Ethereum's Trading Volume decreases, ETH leveraged long positions may face Close Position risks due to funding rate costs.
BlockBeats news, on September 10, Matrixport released a market view stating that Ethereum treasury companies have recently become quiet, with their net asset value (NAV) hovering around 1—this clearly indicates that investors are unwilling to pay a premium for these stocks. Even Bitcoin treasury companies have seen a significant decline in their net value. Although this week's U.S. inflation data and next week's Federal Open Market Committee (FOMC) Meeting may bring some favourable information to the crypto market, Ethereum's volume has plummeted from $122 billion to just $41 billion, while futures open interest has shown almost no significant decline. This divergence explains why ETH prices can still be maintained, but as trading volume decreases, some traders holding leveraged long positions may soon be forced to close positions—especially as high funding rates increase the cost of holdings.