According to BlockBeats, data from Coinglass reveals that the current funding rates on major centralized and decentralized exchanges (CEX and DEX) indicate a neutral market sentiment, with no significant bullish trend observed. The funding rates for major cryptocurrencies are detailed in the accompanying data.
Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the trading platform collecting these fees. It serves to adjust the cost or profit of holding contracts, ensuring that contract prices remain close to the underlying asset prices.
A funding rate of 0.01% is considered the baseline rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it suggests a bearish market sentiment.