On June 2nd, data released by the cryptocurrency market monitoring platform Coinglass drew attention. Data shows that the current funding rates of major centralized exchanges (CEX) and decentralized exchanges (DEX) reflect an overall neutral to bearish market trend. For details on the funding rates of various major currencies, please refer to the relevant attached charts.
Perhaps many investors are unfamiliar with the “capital rate”. In simple terms, in cryptocurrency trading, especially in perpetual contract trading, the funding rate is a mechanism set by the trading platform to keep the contract price consistent with the actual price of the underlying asset. It is the rule for long and short traders to transfer funds to each other, and the trading platform itself does not charge any fees for it. For traders holding contracts, the funding rate will affect their holding cost or return, ensuring that the contract price is close to the true price of the underlying asset.
In industry standards, a funding rate of 0.01% is regarded as the benchmark level. When the funding rate is higher than 0.01%, it indicates that the majority of investors in the market are optimistic about the price of cryptocurrencies. When the funding rate is lower than 0.005%, it indicates that the market generally expects the price to fall. The neutral to bearish trend presented by the monitoring data this time undoubtedly provides an important reference for investors’ next trading decisions.
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