Divergence in Funding Rates Observed Across Major Cryptocurrency Exchanges

According to BlockBeats, recent data from Coinglass indicates a divergence in funding rates across major centralized and decentralized exchanges, reflecting a mix of neutral and bearish sentiments. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts. This rate facilitates the exchange of funds between long and short traders, without the platform charging a fee, to adjust the cost or yield of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% is considered the benchmark rate. When the rate exceeds 0.01%, it suggests a general bullish sentiment in the market. Conversely, a rate below 0.005% indicates a prevailing bearish sentiment.