Cryptocurrency Funding Rates Show Slight Increase Amid Bearish Sentiment for Some Tokens

According to BlockBeats, data from Coinglass indicates a slight rise in funding rates across major centralized and decentralized exchanges. Despite this increase, certain tokens continue to exhibit bearish trends. Funding rates are fees set by cryptocurrency trading platforms to maintain balance between contract prices and the underlying asset prices, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform charging this fee. It serves to adjust the cost or profit of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% signifies a baseline rate. When the rate exceeds 0.01%, it suggests a general bullish market sentiment. Conversely, a rate below 0.005% indicates a bearish outlook.