Glassnode data has revealed that funding rates in cryptocurrency markets have fallen to their lowest levels since the major market crash of 2022. This, analysts say, signals the most serious deleveraging and risk reduction in the sector in recent years.
Funding Rates in Crypto Markets at Lowest Level Since 2022 Crash
The funding rate represents the fee futures investors pay or receive to offset their position costs. A sharp decline in rates indicates that investors are withdrawing from aggressive long (bullish) positions and that leveraged trading volume in the market has decreased significantly.
Glassnode analysts note that this sharp decline in funding rates has not been seen since the 2022 Terra (LUNA) crash and FTX bankruptcy. This trend signals a period of market rebalancing and liquidation of excessively risky positions.
According to experts, this could reduce price volatility in the short term and contribute to a healthier market structure in the medium term. However, the continued low funding rates indicate a decline in trader interest and a potential continuation of market liquidity shortages.
The crypto market is searching for a new direction as we enter the last quarter of 2025, with volatility decreasing and leveraged positions clearing.
*This is not investment advice.
