Market Divergence Evident in Cryptocurrency Funding Rates

According to BlockBeats, recent data from Coinglass indicates a continued divergence in the cryptocurrency market, with both bullish and bearish sentiments present. The funding rates for major cryptocurrencies on mainstream centralized and decentralized exchanges 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 this fee. It serves to adjust the cost or yield of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% signifies a baseline rate. Rates above 0.01% suggest a general bullish market sentiment, while rates below 0.005% indicate a bearish outlook.