2021 was a landmark year for Binance Coin (BNB), characterized by periods of extreme optimism and significant volatility. The funding rates throughout the year reflected the token's dramatic price appreciation and the broader cryptocurrency market's bullish sentiment.
The first quarter of 2021 began with unprecedented enthusiasm for BNB. January saw an average rate of 0.06056%, indicating strong bullish sentiment. The month experienced extreme positive rates, peaking at 0.24759% on January 4th, reflecting the market's exuberance.
February maintained this bullish trend with an even higher average rate of 0.07902%. The month saw several days of extraordinary rates, reaching 0.32148% on February 20th, coinciding with BNB's rapid price appreciation.
March showed a slight cooling but still maintained positive sentiment with an average rate of 0.04576%. The month continued to see significant positive rates, particularly in the first half, with a high of 0.11388% on March 12th.
The second quarter began with continued enthusiasm. April's average rate climbed to 0.07400%, with several days seeing rates above 0.20%. This bullish sentiment aligned with BNB's push to new all-time highs, breaking $600 for the first time.
May started strong but experienced a significant market correction. The average rate for the month decreased to 0.01430%, masking the extreme volatility. On May 19th, as the entire crypto market experienced a sharp downturn, the funding rate plummeted to -0.08803%, the lowest point of the quarter.
June marked a shift to negative territory with an average rate of -0.00619%. The month saw more stable rates in the first half before experiencing some negative spikes in the latter part, reflecting the market's uncertainty as BNB struggled to maintain support above $300.
The third quarter began with continued bearish sentiment. July maintained a negative average rate of -0.02898%, with several days of significant negative rates, particularly in the middle of the month. The rate hit a low of -0.10527% on July 18th, indicating strong pessimism.
August marked a turnaround with the average rate rising to 0.02841%. The month saw increasing positive sentiment, especially in the latter half, with rates often exceeding 0.05% as BNB's price recovered above $400.
September showed moderation with a positive average rate of 0.01035%. The month started strong with rates reaching 0.09392% on September 6th but experienced more subdued rates in the latter half.
The final quarter of 2021 witnessed fluctuating sentiment for BNB. October started negatively with an average rate of -0.00427%. The month saw significant volatility, with rates swinging from -0.08218% on October 1st to 0.09925% on October 23rd.
November showed a return to positive territory with an average rate of 0.00591%. While not as extreme as earlier in the year, the month still saw significant daily fluctuations, with a notable spike to 0.07968% on November 10th.
December ended the year with a slight negative average of -0.00588%. The month started with some negative pressure but stabilized in the latter half, often maintaining a steady 0.00500% rate, indicating a period of consolidation for BNB around the $500-$550 range.
Throughout 2021, BNB funding rates reflected the token's dramatic journey from around $40 at the start of the year to over $500 by year-end. The extreme positive rates in the first half of the year mirrored the market's euphoria, while the more volatile and often negative rates in the second half reflected the challenges and consolidation phase experienced by BNB and the broader crypto market. This rollercoaster of funding rates underscored BNB's emergence as a major player in the cryptocurrency space and its increased importance within the Binance ecosystem.
