Positive funding but low Spot liquidity: Two data points to read together
Derivatives trackers in the November 13 report recorded positive funding for SHELL, ranging from around 0.01–0.04% every 8 hours, depending on the source.
Positive funding means Long positions pay fees to Short positions under the perpetual contract mechanism.
But this does not mean Spot buying pressure is strong. Funding reflects positioning in the Futures market, while Spot volume reflects trading in the spot market.
Over the same period, CoinGlass recorded 24-hour Futures volume of around USD 2.85 million, while Spot volume was around USD 128,000.
This difference shows why it is important to distinguish between derivatives trading activity and actual demand to buy and sell tokens on Spot.
#SHELL #FundingRate #SpotTrading
Derivatives trackers in the November 13 report recorded positive funding for SHELL, ranging from around 0.01–0.04% every 8 hours, depending on the source.
Positive funding means Long positions pay fees to Short positions under the perpetual contract mechanism.
But this does not mean Spot buying pressure is strong. Funding reflects positioning in the Futures market, while Spot volume reflects trading in the spot market.
Over the same period, CoinGlass recorded 24-hour Futures volume of around USD 2.85 million, while Spot volume was around USD 128,000.
This difference shows why it is important to distinguish between derivatives trading activity and actual demand to buy and sell tokens on Spot.
#SHELL #FundingRate #SpotTrading