According to BlockBeats, recent data from Coinglass indicates a divergence in market sentiment among major centralized and decentralized exchanges, with bearish and neutral outlooks coexisting. The funding rates for mainstream cryptocurrencies reflect this trend.
Funding rates are fees set by cryptocurrency trading platforms to maintain 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 platform charging a fee, to adjust the cost or profit of holding contracts, ensuring contract prices remain close to asset prices.
A funding rate of 0.01% signifies a baseline rate. When the rate exceeds 0.01%, it suggests a generally bullish market sentiment. Conversely, a rate below 0.005% indicates a predominantly bearish market outlook.