Crypto Funding Rates Hit All-Time Low as Market Reaches New Equilibrium

Recent data from Glassnode reveals that funding rates within cryptocurrency markets have reached their lowest point since the substantial market downturn of 2022. This decline suggests a significant wave of risk reduction and deleveraging in the sector, marking a period of unprecedented caution for traders. Analysts attribute this drastic shift to investors withdrawing from previously aggressive long positions and reducing leveraged trading volume as they seek to navigate a more stable market environment. The last time we saw such a significant drop was during the turbulent events of the Terra (LUNA) crash and FTX bankruptcy, illustrating just how far the industry has come in terms of risk management.