Ethereum Perpetual Futures Funding Rate Peaks at Highest Since May 2024

Key Points:

• Ethereum perpetual futures funding rate skyrocketed to an annualized 18%+, the highest since May 2024, indicating bullish market sentiment.
• Traders are capitalizing on ETH’s price drop from $3,800 to $2,500, viewing it as an attractive entry point ahead of the US presidential election.
• BlackRock CEO Larry Fink highlights Ethereum’s enhanced blockchain potential, signalling a shift in focus from Bitcoin to including ETH as a key digital asset.

According to the latest report from Matrixport, the funding rate of Ethereum perpetual futures has reached an annualized 18% plus for the first time since May 2024.

Ethereum Perpetual Futures Funding Rate Hits New High Since May 2024

Ethereum perpetual futures spike indicates that market sentiment has flipped into taking a heavily long position on Ethereum in anticipation of price moves surrounding the US presidential election.

Since ETH’s price decreased from $3,800 to $2,500, traders have taken advantage of a much more financially viable token valuation. The present market structure indicates investors’ optimism about Ethereum’s potential recovery, at least if recent trends in this digital asset are anything to go by.

Read more: Ethereum Founder Vitalik Buterin Makes Over $600,000 Profit in Meme Coins

BlackRock Signals Growing Interest in Ethereum as a Key Digital Asset

BlackRock CEO Larry Fink expressed an improvement in Ethereum’s blockchain role. He stressed that BlackRock has focused on Bitcoin and sees Ethereum as an essential alternative in the digital asset sector. This shift in focus by one of the world’s largest asset management companies reflects broader market trends and the growing appreciation of Ethereum’s value proposition.

The sentiment in Ethereum is thus evolving going into the election. To many, it represents a catalyst of innovation that could mean Ethereum plays a meaningful role in the future of digital finance. Therefore, it would be likely that dynamics between political events and market strategy will continue to shape investor behaviour and give Ethereum a special place in the following months.