Why do funding rates matter so much in perpetual markets?

[AIcash]

Funding rates reveal trader sentiment.
Positive = longs pay shorts → bullish crowding.
Negative = shorts pay longs → bearish crowding.
Smart traders fade extreme funding — it’s often a reversal signal.

[kelson10]

Funding is the heartbeat of perp sentiment — it shows who’s paying to stay wrong.

[alex10]

Smart traders watch funding, not hype — it tells where pain is building.