Recent analysis indicates that XRP and Ethereum are leading the charge in terms of Funding Rates among major cryptocurrencies, highlighting a growing interest in long-term positions.

XRP & Ethereum Show Significant Positive Movement in Funding Rates

In a recent update shared on X, analytics powerhouse Glassnode elaborated on the current state of Funding Rates among the leading cryptocurrencies.

The Funding Rate acts as a crucial metric that tracks the fees exchanged between investors on perpetual futures markets across various exchanges.

A positive Funding Rate indicates that long position holders are paying a premium to short position holders, showcasing a bullish sentiment in the market. Conversely, if the Funding Rate dips below zero, it reflects a bearish tone as short sellers dominate the market.

Glassnode also provided valuable insights into the current Funding Rates for major assets within the crypto ecosystem:

The image clearly illustrates that most assets maintain a Funding Rate above the 0% threshold, although a majority are still hovering at minimal values — suggesting a largely neutral sentiment among investors.

Particularly, XRP and Ethereum stand out with funding rates at 0.093% and 0.083% respectively, while the next contender, Tron (TRX), holds a mere 0.0052%.

This shift towards positive sentiment is linked to favorable on-chain metrics. Notably, the Supply in Profit stands at 79.5% for XRP and 64.7% for Ethereum. This indicates that while a substantial percentage of the supply is profitable, it’s not as extreme as Bitcoin’s 98.4% or Tron’s 96.6%.

Interestingly, both cryptocurrencies have witnessed a reduction in Daily Active Addresses, which track the number of addresses engaging in transfer activities. This metric has dropped by 11.4% for Ethereum and an even steeper 34.3% for XRP.

Although the number of active users is declining, those remaining seem to be more active. The On-Chain Volume has surged by 74.5% for Ethereum and a remarkable 637.3% for XRP.

Despite the contrasting conditions, there is a burgeoning interest in bullish positions within the futures market. “This trend reveals an increasing demand for long exposure, even as overall on-chain activities and sentiments appear mixed,” observes Glassnode.

XRP Price Dynamics

At present, XRP is trading near $2.21, reflecting an increase of nearly 9% over the past week.