Funding Rates in Crypto Markets Are at Their Lowest Level Since the 2022 Crash! Here Are the Details
Glassnode data has revealed that funding rates in cryptocurrency markets have fallen to their lowest levels since the major market crash of 2022. This, analysts say, signals the most serious deleveraging and risk reduction in the sector in recent years.
Funding Rates in Crypto Markets at Lowest Level Since 2022 Crash
The funding rate represents the fee futures investors pay or receive to offset their position costs. A sharp decline in rates indicates that investors are withdrawing from aggressive long (bullish) positions and that leveraged trading volume in the market has decreased significantly.
Glassnode analysts note that this sharp decline in funding rates has not been seen since the 2022 Terra (LUNA) crash and FTX bankruptcy. This trend signals a period of market rebalancing and liquidation of excessively risky positions.
According to experts, this could reduce price volatility in the short term and contribute to a healthier market structure in the medium term. However, the continued low funding rates indicate a decline in trader interest and a potential continuation of market liquidity shortages.
The crypto market is searching for a new direction as we enter the last quarter of 2025, with volatility decreasing and leveraged positions clearing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Moonbirds to launch BIRB token in early Q1 2026
Aligning Universities with Emerging Industries: The Critical Need for STEM Investment
- Global industries demand AI, renewable energy, and biotech skills faster than traditional education systems can supply, creating a critical skills gap. - Universities like MIT and Stanford are embedding AI across STEM curricula while industry partnerships accelerate hands-on training in automation and biomanufacturing. - Renewable energy programs with apprenticeships and public-private funding are addressing talent shortages as $386B global investments outpace workforce readiness. - Biotech's fragmented
PENGU Token Value Soars: Blockchain Data and Institutional Interest Indicate Optimal Timing for Investment
- PENGU ranks #81 with $706.5M market cap, showing rising institutional interest and whale accumulation. - The pending Canary PENGU ETF, if approved, could unlock institutional capital by including NFTs in a U.S. ETF. - Mixed on-chain signals (RSI 38.7, OBV growth) and 2B tokens moved from team wallets highlight uncertainty. - Partnerships with Care Bears and Lufthansa, plus Bitso collaboration, expand utility but face regulatory risks. - Recent 8.55% price rebound and 2.6% gain post-BNB listing suggest ca
Evaluating How the COAI Token Scandal Influences Cryptocurrency Regulatory Policies
- COAI Token's 88% price crash and $116.8M loss exposed systemic risks in centralized AI-DeFi projects with opaque governance. - Global regulators responded with stricter frameworks, including EU's MiCA and Singapore's asset freezes, to address jurisdictional gaps. - Institutional investors now prioritize compliance, with 55% of hedge funds allocating to digital assets via tokenized structures in 2025. - Emerging solutions include AI-driven risk platforms and anthropological governance models to enhance tr
Trending news
MoreCrypto prices
More
