$USAR 24 hours it rose 3.3%, funding rate stays at zero, and open interest is 112,000. This set of data points to an extremely quiet micro-state: longs are chasing the price but paying no capital cost; shorts are not forced into paying either. Prices are moving, but neither side’s sword has been drawn.
Why is the funding rate zero? Because the exchange’s perpetual contract design mechanism makes the rate drop to zero when market sentiment is balanced. But a 3.3% rise means there are longs actively buying to open positions—their costs are only the entry price, with no ongoing positive funding-rate erosion. Under this structure, the upward momentum comes from fresh inflows from new long capital in spot or contracts, not from shorts capitulating under squeeze (negative funding). This is a rise with no cost pressure, but it also means there is a lack of a squeeze catalyst.
The current state is most favorable for those chasing longs—they don’t have to pay extra for their positions. But it also makes the price action fragile: once inflows slow, long positions without cost-based support can easily loosen. The strongest counterargument is that zero funding may only be a transitional state; if prices keep climbing, the funding rate is likely to turn positive, and then the true cost of longs’ positions will begin to accumulate.
Next, watch whether the price can hold above 17.86.
Trading tag: #TradFi #链上美股 #USAR
Where do you think this assessment is most likely to be wrong?
Why is the funding rate zero? Because the exchange’s perpetual contract design mechanism makes the rate drop to zero when market sentiment is balanced. But a 3.3% rise means there are longs actively buying to open positions—their costs are only the entry price, with no ongoing positive funding-rate erosion. Under this structure, the upward momentum comes from fresh inflows from new long capital in spot or contracts, not from shorts capitulating under squeeze (negative funding). This is a rise with no cost pressure, but it also means there is a lack of a squeeze catalyst.
The current state is most favorable for those chasing longs—they don’t have to pay extra for their positions. But it also makes the price action fragile: once inflows slow, long positions without cost-based support can easily loosen. The strongest counterargument is that zero funding may only be a transitional state; if prices keep climbing, the funding rate is likely to turn positive, and then the true cost of longs’ positions will begin to accumulate.
Next, watch whether the price can hold above 17.86.
Trading tag: #TradFi #链上美股 #USAR
Where do you think this assessment is most likely to be wrong?