ETH Funding Rates at All-Time Low as Ethereum Prepares to Ditch PoW
Barring any unforeseen technical challenges, Ethereum will transition to a proof-of-stake consensus mechanism in about one hour, according to EtherNodes estimations.
This time might vary, depending on the state of the miners. With that, it appears that futures traders are already making their move.
- At the time of this writing, ETH funding rates are at their all-time lowest point, according to data from CryptoQuant.
- Funding rates are important for futures traders because they can have a considerable impact on their profits or losses. With relatively high leverage, a trader that pays high funding may suffer losses even if the market doesn’t go through excessive volatility.
- In this particular case, the data from CryptoQuant indicates that short traders are currently the dominant force in the order book and that they are willing to pay long traders.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.