Glassnode: Altcoin funding rates cool, while open interest has fallen only about October from its peak 5%
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AT A GLANCE
Glassnode’s weekly report stated that altcoin funding rates are cooling, but most leveraged positions remain open.
Article
Report: Altcoin funding rates cool, but open interest has fallen only about 5%
PANews October 22 According to a report, Glassnode’s latest weekly report shows that, as of October 20, the proportion of altcoins with funding rates above neutral had fallen from September nearly in late 25%to less than 5%, nearing 2-year range lows. However, measured at constant prices, altcoin open interest has declined only about October from its peak, and most leveraged positions remain open. Glassnode noted that a renewed rise in funding rates would signal the reaccumulation of crowded leverage.
As of October 20, the proportion of altcoins with funding rates above neutral had fallen from September nearly in late 25%to less than 5%。
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The proportion is close to 2-year range lows.
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Measured at constant prices, altcoin open interest has declined only about October from its peak 5%。
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Glassnode said that most leveraged positions remain open.
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Glassnode noted that a renewed rise in funding rates would signal the reaccumulation of crowded leverage.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Funding rates can be understood as fees periodically paid by the long and short sides of perpetual contracts. The significant decline in the proportion of altcoins with funding rates above neutral indicates that funding rates have cooled; however, open interest has fallen only about October from its peak 5%, indicating that many leveraged positions remain in the market.
Why it matters to readers
The simultaneous cooling of funding rates and modest decline in open interest means that whether crowded leverage has truly dissipated remains to be seen. The original text notes that a renewed rise in funding rates could indicate the reaccumulation of crowded leverage.
Beginners should monitor funding rates and open interest together rather than assessing market risk based on a single indicator.
Risks and unknowns
The content was relayed by PANews from Glassnode’s weekly report; the original text did not provide a link to Glassnode’s original report.
The specific methodology for “calculation at constant prices” was not explained in the original text.
The original text did not specify the precise scope of the altcoins concerned.
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Funding rates
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