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Annualized Funding Rate

Funding rate annualized (×3×365)

PropertyValue
Categoryexchanges
Unit%
Resolution1d
AssetsBTC
TierBasic
API EndpointGET /v1/funding/aggregate
Fieldannualized_rate

Overview

Annualized Funding Rate converts the 8-hour perpetual futures funding rate to an annualized percentage, making it easier to compare with traditional finance yields and interest rates.

Interpretation

  • > 20%: Market is overheated with excessive bullish leverage — historically precedes corrections
  • 10-20%: Strong bullish sentiment, elevated leverage
  • 0-10%: Normal to mildly bullish market conditions
  • < 0%: Bearish sentiment — short positions are paying long positions
  • < -10%: Capitulation-level bearish sentiment, often near market bottoms

Use Cases

  • Cycle analysis: Annualized rates above 30% have historically marked cycle tops
  • Yield comparison: Compare crypto funding yields to DeFi rates, Treasury yields, or money market rates
  • Leverage gauge: High annualized rates indicate crowded leveraged positions

Calculation

annualized_rate = avg_funding_rate × 3 × 365

Where 3 represents three 8-hour funding periods per day.

API Usage

curl -H "Authorization: Bearer YOUR_API_KEY" \
"https://api.blocklens.co/v1/funding/aggregate?start_date=2024-01-01&end_date=2024-12-31&limit=365"