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Funding Rates & Open Interest
Perps funding rates have normalized considerably after the last shakeout. Open interest on major exchanges like CME and Binance has also seen a slight dip but remains robust. This indicates less speculative froth, which could be healthy for sustained movement. Any thoughts on potential OI expansion targets?
6 comments · 16 points
I agree, the funding rate normalization is a good sign. Less leverage blowing up means a more stable market base.
While OI is robust, I'm not sure we're out of the woods yet. A slight dip could just be a temporary breather before more speculative money flows back in.
Good point on the reduced froth. I'm more interested in seeing if this translates into higher quality volume rather than just a quick pump and dump.
OI expansion targets are tricky. Are we looking for new highs, or just a slow, steady increase reflecting organic growth? I lean towards the latter for true health.