In the world of cryptocurrency, the winds of optimism are blowing for altcoins like XRP, TRX, and DOGE as they lead the charge with positive funding rates. This comes as Bitcoin (BTC) enters its traditionally sluggish third quarter, marked by a rather stagnant price action. Funding rates, those pivotal metrics that signal market sentiment, are currently painting a bullish picture for these tokens, suggesting a growing demand for leveraged long positions.
Funding Rates: A Bullish Indicator
Perpetual funding rates, a key indicator in the crypto market, are rates charged by exchanges every eight hours to traders holding long or short positions in perpetual futures contracts—those without an expiry date. When funding rates tilt positive, it indicates that the perpetuals are trading at a premium to the spot market, necessitating payments from long positions to short ones. This phenomenon is interpreted as a sign of bullish sentiment.
As of today, XRP, the fourth-largest digital asset by market value, boasts an impressive annualized funding rate of nearly 11%, the highest among the top 10 tokens, according to data from Velo. Meanwhile, funding rates for Tron’s TRX and Dogecoin (DOGE) stand at 10% and 8.4%, respectively. In contrast, market giants Bitcoin and Ethereum (ETH) are seeing marginally positive rates, a testament to the robust demand for bullish exposure in XRP, TRX, and DOGE. This trend is particularly notable given recent market fluctuations, as detailed in our analysis of XRP and Dogecoin’s price movements.
Santiment, a market analytics firm, recently highlighted the surge in bullish sentiment for XRP, despite a halt in the settlement proceedings between Ripple and the SEC. Privacy-centric token Monero (XMR) also makes a notable appearance outside the top 10, with a funding rate surpassing 23%, while Stellar’s XLM indicates a bearish skew with its 24% funding rate.
Seasonal Trends and Market Dynamics
Historically, Bitcoin has struggled in the third quarter, with data from Coinglass showing an average gain of just 5.57% since 2013. This pales in comparison to the fourth quarter’s average gain of 85%. As of the latest, Bitcoin’s spot price hovers around $107,000, largely oscillating between $100,000 and $110,000 for close to 50 days now. This stagnation is attributed to a tug-of-war between selling by long-term holders and consistent inflows into U.S.-listed spot exchange-traded funds (ETFs). For more on how this impacts other major cryptocurrencies, see our coverage of traders’ focus on XRP, ETH, SOL, and HYPE.
The anticipation for a major price move looms large, particularly with Federal Reserve Chairman Jerome Powell’s upcoming speech and the imminent release of nonfarm payrolls data later this week. These events are expected to provide fresh insights into the economic landscape, potentially influencing market sentiment.
Looking Ahead: Will the Trend Hold?
The cryptocurrency market is no stranger to volatility, and while positive funding rates for altcoins like XRP, TRX, and DOGE hint at bullish sentiment, the question remains: Can this momentum be sustained? Market watchers are keenly observing whether the enthusiasm for these tokens will translate into a broader market rally—or if Bitcoin’s historical third-quarter lull will cast a shadow over the current optimism.
In the coming weeks, traders and investors alike will be scrutinizing economic indicators and policy announcements for any signs of change. As the market landscape continues to evolve, the interplay between macroeconomic factors and crypto-specific dynamics will undoubtedly shape the path forward. For now, it seems the altcoin market is basking in a moment of optimism, but whether this will lead to lasting change is yet to be seen.
Source
This article is based on: XRP, TRX, DOGE Lead Majors With Positive Funding Rates as Bitcoin’s Traditionally Weak Quarter Begins
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
