Dogecoin funding rate at 7.4 percent a year: the next step

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Analysis: long positions in Dogecoin have been paying funding costs again on OKX since Monday afternoon, annualised at 7.4 percent as of Tuesday morning. At the same time, almost five long accounts come for every short account while open interest shrinks.Anyone betting on a rising Dogecoin price on Tuesday morning and using leverage to do it is paying for the privilege again. The funding rate for the perpetual futures contract on Dogecoin stood at 0.0068 percent at the Tuesday morning settlement on the OKX exchange. That rate falls due every eight hours. Annualised, it comes to 7.4 percent that a leveraged long position carries in running costs alone, before the price has moved at all. Two things are therefore on the record: since Monday afternoon's settlement, funding has run against the buy side for three consecutive periods, and the ratio of accounts has shifted markedly within a single week. What our editorial team concludes from this for the days ahead is set out further do...