BitMEX study reveals 90% drop in extreme funding rates on XBTUSD since 2016
BitMEX, known as one of the safest cryptocurrency exchanges, has unveiled the results of its latest study on the XBTUSD perpetual swap—its longest-running Bitcoin derivatives product. Spanning data from May 2016 to May 2025, the research reveals a sharp decline in extreme funding rates, highlighting the growing maturity and stability of the crypto market.
90% decline in extreme funding rates shows market evolution
Since launching the first perpetual swap in 2016, BitMEX has led the industry with innovations that now dominate crypto trading volumes globally. The XBTUSD contract, a Bitcoin perpetual swap, serves as the centerpiece of this evolution. Central to this product are funding rates—periodic payments exchanged between long and short holders to keep futures prices aligned with spot prices.
According to the BitMEX study, extreme funding rates have plummeted by 90% over the last nine years. This decline, especially evident in 2024–2025, occurred even as Bitcoin crossed the $100,000 threshold, a sign of how much the market has stabilized.
“This dramatic reduction underscores the growing maturity and institutional acceptance of crypto,” said Stephan Lutz, CEO of BitMEX. “We’re proud to offer insights that reinforce how deeply integrated digital assets are becoming within global finance.”
Bitcoin ETFs and DeFi driving increased market efficiency
The introduction of Bitcoin exchange-traded funds (ETFs) in January 2024, along with the expansion of DeFi protocols like Ethena, has significantly contributed to arbitrage efficiency. These tools help traders anchor perpetual futures closer to the spot market, reducing the potential for funding rate volatility and enabling more predictable investment environments.
As a result, the crypto space has entered an era of stable funding rates. This reduced volatility could make Bitcoin more attractive to institutional investors, potentially opening the door for even greater adoption in traditional financial sectors.
