#BNBChainMeme Market sentiments are neutral as cryptocurrency funding rates stabilize

AI Summary

According to BlockBeats, Coinglass data shows that funding rates on major centralized and decentralized exchanges (CEX and DEX) indicate neutral market sentiments. Current rates do not demonstrate a clear bullish or bearish trend for major cryptocurrencies.

Funding rates are a mechanism used by cryptocurrency trading platforms to maintain balance between contract prices and underlying asset prices, especially in perpetual contracts. This system facilitates the exchange of funds between traders in long and short positions, without the platform charging a fee to adjust the value or profit from holding contracts and keeping contract prices in line with asset prices.

A funding rate of 0.01% is considered baseline. When the rate exceeds 0.01%, it indicates overall positive market sentiments. Conversely, a rate below 0.005% suggests a bearish outlook.