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Binance ETH/USDT Perpetual Funding Rate is Now -0.24%

After the successful execution of the merge, the ETH/USDT perpetual funding rate on Binance has reportedly decreased from roughly -0.5% to about -0.24%, as indicated by data from Coinglass. After the successful completion of the merge, the usage rate went below 75%, which resulted in ETH that was borrowed on Aave being refunded.

Source: Coinglass

Both the process by which new ETH is generated and the manner in which transactions on the Ethereum network are verified have been irrevocably altered as a result of the Ethereum Merge update.

Up until the point at which the two blockchains were merged into a single ledger, mining was an energy-intensive process in which users focused enormous amounts of computer power on tough riddles in order to earn ETH.

It would appear that traders were employing a variety of strategies in order to profit from and protect themselves against the volatility that may result from the imminent change in the manner in which the Ethereum blockchain verifies transactions. This is likely the reason why ETH shorts have become more expensive.

A negative perpetual funding rate of this magnitude is normally only seen by alternative cryptos on a day when the market has risen by far into the double digits and a pullback is expected.

It is clear that a significant number of investors were planning for the worst-case scenario, even if there is the possibility that the negative financing rate of Ethereum has a completely legitimate explanation.

The post Binance ETH/USDT Perpetual Funding Rate is Now -0.24% appeared first on Coin Edition.

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Source: Cryptocurrency - investing.com

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