Ethereum funding rates in 2023 demonstrated a gradual increase in bullish sentiment, reflecting the cryptocurrency market's recovery and Ethereum's growing importance in the blockchain ecosystem. The average 8-hour funding rates ranged from slightly negative to notably positive values, illustrating the shifting market dynamics throughout the year.
The first quarter of 2023 began with cautious optimism for Ethereum. January saw an average rate of 0.00751%, with significant daily fluctuations. The month started strong, reaching a peak of 0.02162% on January 14th, coinciding with Ethereum's price surge above $1,400.
February maintained the positive momentum with an increased average rate of 0.00885%. The month saw more stable rates, often hovering around 0.01%, reflecting growing confidence as Ethereum approached $1,700.
March experienced a slight cooling with an average rate of 0.00655%. However, the month saw a notable spike to 0.01502% on March 15th, aligning with Ethereum's push towards $1,800 amid broader market optimism.
The second quarter maintained generally positive funding rates. April began with an average rate of 0.00671%, showing consistency with the previous month. The daily rates were less volatile compared to Q1, with most days staying within the 0.003% to 0.01% range.
May saw a slight decrease in the average rate to 0.00549%. The month started strong but experienced more subdued rates in the latter half, reflecting market uncertainty as Ethereum struggled to maintain support above $1,800.
June marked a minor uptick with an average rate of 0.00594%. The month witnessed several days with rates approaching 0.009%, particularly towards the end of the month. This period aligned with renewed interest in Ethereum, partly fueled by anticipation of the upcoming Shapella upgrade.
The third quarter began with a continuation of positive but moderated funding rates. July's average rate stood at 0.00624%, with daily rates generally fluctuating between 0.003% and 0.01%. The relatively stable rates mirrored Ethereum's price consolidation around the $1,900 mark.
August maintained a similar trend with an average rate of 0.00454%. The first half of the month saw several days with rates near 0.01%, indicating sustained optimism. However, the latter half experienced a notable shift, with rates dropping significantly, even turning negative on some days. This change coincided with Ethereum's price decline below $1,700.
September marked a significant drop in funding rates, with the monthly average plummeting to 0.00138%. This was the lowest monthly average of the year, reflecting increased market pessimism. The month saw multiple days with negative rates, particularly in the middle of the month when Ethereum's price struggled to maintain support above $1,600.
The final quarter of 2023 witnessed a dramatic shift in funding rates, mirroring Ethereum's strong price performance. October started cautiously with an average rate of 0.00560%, but daily rates began to climb steadily throughout the month. By the end of October, rates consistently hit 0.01%, coinciding with Ethereum's break above $1,800.
November saw a significant surge in bullish sentiment, with the average rate more than doubling to 0.01370%. The month experienced some of the highest daily rates of the year, peaking at 0.03735% on November 10th. This period aligned with Ethereum's rapid ascent, breaking through $2,000 and approaching $2,200.
December marked the culmination of the year's bullish trend, with the average funding rate reaching a yearly high of 0.01993%. The month witnessed unprecedented daily rates, particularly in its latter half. December 28th saw an extraordinary rate of 0.04943%, the highest of the year, as Ethereum surged past $2,300 and approached $2,400. This extreme bullish sentiment reflected the market's excitement over Ethereum's technological advancements and its role in the growing DeFi and NFT ecosystems.
The year 2023 demonstrated the evolving nature of Ethereum funding rates, from the cautious optimism of Q1 to the summer consolidation in Q3, and finally to the explosive rally in Q4. These fluctuations provided valuable insights into market sentiment throughout Ethereum's journey from around $1,200 at the start of the year to over $2,300 by year's end, setting the stage for potential further growth in 2024.
