According to ChainCatcher, Coinglass data shows that current mainstream CEX and DEX funding rates indicate a neutral market without a comprehensive bullish sentiment. Binance's BTC contract funding rate has returned to 0.01% (previously below 0.01%), and some trading platforms even show negative rates (more shorts). Specific funding rates for mainstream cryptocurrencies are shown in the attached image.
ChainCatcher reports that funding rates are fees set by cryptocurrency trading platforms to maintain balance between contract prices and underlying asset prices, typically applied to perpetual contracts. It is a fund exchange mechanism between long and short traders, where the trading platform does not collect this fee. It is used to adjust the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price.
ChainCatcher notes that when the funding rate is 0.01%, it represents the benchmark rate. When the funding rate is greater than 0.01%, it indicates that the market is generally bullish. When the funding rate is less than 0.005%, it represents that the market is generally bearish.
