Data shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
The Funding Rate refers to an indicator that keeps track of the amount of periodic fees that the investors on the perpetual futures market are paying each other on the various centralized exchanges.
When the value of this metric is positive, it means the long investors are paying a premium to the short ones in order to hold onto their positions. Such a trend suggests the presence of a bullish bias in the derivatives market.
On the other hand, the indicator being under the zero mark implies the short positions outweigh the long ones and a bearish sentiment is shared by the majority of the traders.
Now, here is the table shared by Glassnode that shows the current Funding Rate for the major assets in the sector:
As is visible above, all of these assets except for one have their Funding Rate above the 0% level. For many, however, the metric still has only a small value, meaning that the sentiment tends more or less neutral.
Among the coins with a long bias, XRP and Ethereum particularly stand out, with the metric sitting at 0.093% and 0.083%, respectively. For comparison, the coin with the third highest Funding Rate, Tron (TRX), stands at 0.0052%.
While active users themselves have become fewer, it would appear that those who are left have ramped up activity, as the On-Chain Volume is up by 74.5% for the former and 637.3% for the latter.
Despite the mixed conditions, futures market users are putting on bullish bets. “This signals growing demand for long exposure, even as on-chain activity and sentiment remain mixed,” notes the analytics firm.
At the time of writing, XRP is trading around $2.21, up almost 9% in the last week.
