Dogecoin Leads Cryptocurrency Funding Rates as Long Positions Surge
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Analyzing Dogecoin’s Current Market Influence
Recent data highlights Dogecoin’s prominence among leading cryptocurrencies, particularly in terms of its Funding Rate, which indicates a rise in long-position trades by investors.
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Understanding the Current Dogecoin Funding Rate
According to a recent analysis by Glassnode, a well-known analytics firm, Dogecoin currently boasts a Funding Rate of 0.0092%. This metric is a key indicator used to evaluate the periodic fees exchanged between perpetual futures traders of a particular asset on centralized derivatives platforms.
When the Funding Rate is positive, it signifies that long investors are paying a premium to short investors to maintain their positions, indicating a prevailing bullish sentiment among the majority of traders. Conversely, a negative Funding Rate suggests that short investors are more numerous, reflecting a dominant bearish sentiment.
Comparative Analysis of Funding Rates Across Cryptocurrencies
Glassnode’s data provides a comparative view of Funding Rates among the top cryptocurrencies by market capitalization. As of now, Bitcoin (BTC) and Ethereum (ETH) exhibit positive Funding Rates of 0.0049% and 0.0062%, respectively. This marks a shift from the previous day’s bearish trend. XRP (XRP) also demonstrates a bullish sentiment with a Funding Rate of 0.006%.
Dogecoin, however, stands out with its significantly higher Funding Rate of 0.0092%, leading the sector. On the opposite end is Tron (TRX), where the Funding Rate is negative at -0.0087%, indicating a stronger bearish sentiment. Solana (SOL) maintains a neutral Funding Rate of 0.0012%.
The dominance of a particular sentiment in the Funding Rate often precedes potential liquidation events. For Dogecoin, with its heightened bullish sentiment, there’s an increased risk of a long-position squeeze.
Additional Insights: Supply in Profit Metric
Alongside Funding Rates, Glassnode’s analysis includes the Supply in Profit metric, which measures the percentage of an asset’s supply held at an unrealized gain. Cryptocurrencies like Bitcoin, Tron, and BNB have more than 90% of their supply in profit, while Dogecoin and Solana are below 50%.
Current Status of DOGE Price
As of the latest market data, Dogecoin is trading at approximately $0.1666, marking a decline of over 15% in the past week. This downward trend is evident in the recent price movements observed in the market.
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