A group of altcoins, including Hedera, Stellar, XRP, Algorand, and Cardano, has seen impressive gains over 250% in the last month. This surge leaves traders questioning the rally's sustainability, with some suggesting these tokens were undervalued compared to past highs. However, the heavy use of leverage raises the risk of sharp corrections.

The 30-day funding rate for perpetual futures has increased, with bulls paying 4%-6% monthly to maintain positions. While leverage levels aren't at historical peaks, caution is advised as volatility remains. The altcoin rally contrasts with Bitcoin and Ether, which have more conservative funding rates.