COINOTAG, citing Coinglass data on December 18, shows that funding rates for mainstream exchanges’ perpetual contracts remain muted, signaling a cautious stance in the crypto market. Across both CEX and DEX venues, readings hover near the baseline, implying limited long–short pressure and restrained drift for the near term.
Fundamental concept: The funding rate is a fee mechanism designed to tether contract prices to the underlying asset, applicable to perpetual contracts. A rate around 0.01% is the benchmark; readings above indicate bullish momentum, while readings below 0.005% imply a bearish bias. The latest readings suggest subdued upside potential, encouraging cautious positioning as markets digest ongoing cryptocurrency funding rate dynamics.