According to Odaily, several altcoins, including HBAR, XLM, XRP, ALGO, and ADA, have experienced substantial increases, with gains exceeding 250% over the past 30 days. The funding rates for perpetual futures contracts have risen to between 4% and 6% monthly. This trend indicates an increased use of leverage, suggesting that the current price levels may be vulnerable to significant corrections.
While high funding rates can signal optimism about the potential for further growth in altcoins, they also heighten the risk for traders. This situation contrasts with the more moderate leverage observed in major cryptocurrencies like BTC and ETH. The increased leverage in altcoins reflects a growing interest and speculative activity, which could lead to heightened volatility in the market. As traders navigate these dynamics, the potential for both gains and losses remains substantial, underscoring the need for caution in the current trading environment.
