Among the most extreme funding rates on Binance Perpetual Futures (as of Beijing 21:00, settled every 4 hours):
· OGN -1.195%, 24h +96%
· ERA -0.842%, 24h +18%
· MINA -0.325%, 24h -13%, and it’s down about 40% over 7 days
· MET -0.173%, it was still -0.495% this afternoon
A negative funding rate = shorts pay longs. OGN’s price has doubled, and shorts are still piling in: roughly 1.2% paid every 4 hours, about 7% in a day.
I didn’t find any clear news catalyst for OGN this time, and its perpetual positions are only around $2 million—its market is small. With a small-cap plus an extremely negative funding rate, volatility can be very high.
Comparing to MET written earlier this afternoon: the funding rate tightened from -0.495% to -0.173%, and the price moved from about 0.50 back to 0.46, down roughly 8%, still above 0.433.
During the process of funding rate convergence, the price didn’t continue to get squeezed higher.
Would you go trade a coin whose funding rate is below -1%?
· OGN -1.195%, 24h +96%
· ERA -0.842%, 24h +18%
· MINA -0.325%, 24h -13%, and it’s down about 40% over 7 days
· MET -0.173%, it was still -0.495% this afternoon
A negative funding rate = shorts pay longs. OGN’s price has doubled, and shorts are still piling in: roughly 1.2% paid every 4 hours, about 7% in a day.
I didn’t find any clear news catalyst for OGN this time, and its perpetual positions are only around $2 million—its market is small. With a small-cap plus an extremely negative funding rate, volatility can be very high.
Comparing to MET written earlier this afternoon: the funding rate tightened from -0.495% to -0.173%, and the price moved from about 0.50 back to 0.46, down roughly 8%, still above 0.433.
During the process of funding rate convergence, the price didn’t continue to get squeezed higher.
Would you go trade a coin whose funding rate is below -1%?