In early August, the average funding rate for $TREE became negative, meaning that traders are paying to hold short positions. The open interest in perpetual contracts for $TREE remains high, indicating active speculation.

Negative funding rates indicate a dominance of bearish sentiment in the derivatives market. This may exacerbate the decline in the spot price as traders hedge or close positions.

Over the last 24 hours, the total market capitalization of the cryptocurrency market has decreased by 3%, while Bitcoin's dominance has risen to 57.5%. Altcoins like TREE often show worse performance during such market shifts.

High volatility in $TREE amplifies declines during market downturns. However, the trading volume over the day increased by 63% to $35.6 million, indicating that some investors are starting to accumulate tokens at lower prices.#Treehouse @Treehouse Official