EXPLAINING FUNDING RATES

Summary from the TLDR Crypto newsletter

Perpetual swap funding rates act as a tool that aligns contract prices with market prices. Market sentiment has recently become bullish, indicated by record-high funding rates of 19%+ on major cryptocurrencies and 30%+ on alternatives. The surge shows market participants are confidently going long, which shows optimism from traders. Now is a time to exercise caution as the market tends to test and flush leverage.