PAXG ranks in the top ten on Hyperliquid, negative fees suggest a bearish market?

Question

【BlockBeats】 Recently, the performance of the gold token PAXG on Hyperliquid has been quite interesting. According to on-chain data monitoring, in the past day, PAXG contract trading volume reached $17.05 million, ranking ninth on the platform, with trading activity even surpassing well-known tokens like FARTCOIN, AAVE, and BNB.

What’s more noteworthy is the contract open interest—$71.99 million in funds deposited indicates a high level of market participation. But you can also gauge market sentiment from the fee rates. Currently, the funding rate is -0.0023%. What does this negative number imply?

Simply put: When the market is generally bearish, the funding rate tends to turn negative. This means that shorts need to pay longs to maintain their positions. In other words, there are more people shorting now, giving longs a relative advantage. The fact that PAXG, a digital gold asset, can maintain such trading volume and open interest amid a bear market sentiment truly reflects the market’s recognition of its hedging properties.

TokenToaster · Accepted Answer

Negative fee rate, indicating that short positions are indeed accumulating... But can a position of over 70 million really hold up? I'm skeptical.

ETHReserveBank · Answer

Negative fee rates are actually just a bunch of short sellers piling in. Interestingly, PAXG can still maintain this level of popularity.

TokenomicsTrapper · Answer

ngl the negative funding rate is just classic exit pump pattern... PAXG running through top 10 while everything else bleeds? actually if you read the contracts, these volume spikes right before vesting unlocks are textbook greater fool theory. watched liquidations yesterday like netflix, shorts getting rekt but the real question is who's dumping on schedule next week

SoliditySurvivor · Answer

Negative fee rate? Isn't that just short sellers holding on for dear life... Seems like PAXG is becoming interesting now.

gas_fee_therapy · Answer

Negative fee rates... Is it the shorts bottoming out or the longs supporting the market? Let's see who gets trapped the deepest.

SorryRugPulled · Answer

Negative fee rates look great for the bulls, but in reality, it's the bears dumping the market.

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PAXG can withstand the current hype, indicating that some people still believe in the logic of digital gold.

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Wait, with a holding volume of 71.99 million and a daily trading volume of 17.05 million, isn't this leverage a bit fake?

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Even in a bear market, with this trading volume, if it's not institutions playing around, then it's another wave of retail investors being cut.

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Being a long with negative fee rates is enjoyable, but don't celebrate too early; history shows this is when reversals are most likely.

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Gold tokens? Why not just buy real gold and silver insurance directly, and avoid the hassle of being hacked?

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FARTCOIN has been surpassed haha, how lacking in imagination must they be?

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Funding rates are just an emotional indicator; if you want to look at fundamentals, you should see who is holding the large positions.

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Is it possible that this negative fee rate is just a fake move by the whales before accumulating?

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Hyperliquid has recently become popular, but what about the risks? We all see it clearly.

token_therapist · Answer

The idea of negative fees always feels counterintuitive... Do short sellers actually have to pay money? The logic is a bit confusing.

PAXG ranks in the top ten on Hyperliquid, negative fees suggest a bearish market?

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