Some altcoins have risen by more than 250% in 30 days, and rising funding rates may indicate the risk of a potential correction.
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2024-12-05 14:03 4,606
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According to news on December 5, some altcoins such as HBAR, XLM, XRP, ALGO and ADA have risen sharply, with an increase of more than 250% in 30 days. The funding rate of perpetual futures contracts has risen to between 4% and 6% per month. This situation reflects the increased use of leverage, making current price levels potentially vulnerable to a significant correction.
While high funding rates may indicate optimism and further growth potential for altcoins, they also increase risk for traders, in stark contrast to the milder leverage observed in major cryptocurrencies such as BTC and ETH.