dYdX Funding Rate - Live Chart

The dYdX Funding Rate is an indicator that shows the cost of leverage on the dYdX crypto trading platform. It can swing based on supply and demand for leverage - if more traders are going long, the rate becomes positive, meaning longs pay shorts. When more traders are short, the rate is negative, and shorts pay longs. As a trader, you can keep an eye on the dYdX Funding Rate to gauge market sentiment. A skyrocketing rate often hints at overleveraged longs - and could precede a potential price correction if these traders get liquidated. Conversely, a deep negative rate might imply an abundance of shorts, possibly leading to a price surge when these traders cover their positions.