Funding rates are the hidden tax of perpetual futures. When sentiment is one-sided — too many longs — longs pay shorts every 8 hours. In July 2026, the gaps between the most and least expensive pairs were stark.
The ranking: most expensive longs in July 2026
Average 8-hour funding rate across the month (Binance USDT-M, spot-sampled daily):
| Rank | Pair | Avg 8h rate | Daily cost | Monthly cost | Annualised |
|---|---|---|---|---|---|
| 1 | PEPE | +0.0721% | 0.216% | 6.49% | 78.8% |
| 2 | WIF | +0.0614% | 0.184% | 5.53% | 67.2% |
| 3 | DOGE | +0.0548% | 0.164% | 4.93% | 59.9% |
| 4 | SHIB | +0.0491% | 0.147% | 4.42% | 53.7% |
| 5 | BONK | +0.0432% | 0.130% | 3.89% | 47.3% |
| 6 | SOL | +0.0198% | 0.059% | 1.78% | 21.6% |
| 7 | AVAX | +0.0172% | 0.052% | 1.55% | 18.8% |
| 8 | ETH | +0.0112% | 0.034% | 1.01% | 12.2% |
| 9 | BTC | +0.0096% | 0.029% | 0.86% | 10.5% |
| 10 | XRP | +0.0087% | 0.026% | 0.78% | 9.5% |
Monthly cost = average daily rate × 30. Annualised = daily rate × 365. Binance USDT-M July 1–14 averages.
What these numbers mean in dollars
To make this concrete, here's the monthly funding bill on a $10,000 notional long position:
| Pair | Monthly funding bill ($10k notional) | Annual funding bill |
|---|---|---|
| PEPE | $648.90 | $7,884 |
| WIF | $552.60 | $6,715 |
| DOGE | $492.00 | $5,985 |
| SHIB | $441.90 | $5,369 |
| BONK | $389.10 | $4,728 |
| SOL | $177.75 | $2,160 |
| ETH | $101.35 | $1,231 |
| BTC | $86.10 | $1,046 |
A trader holding a $10,000 notional PEPE long for the full month paid roughly $649 in funding alone — before opening or closing fees. That's 6.5% of the notional position, gone before any price move. PEPE's price would need to rise more than 6.5% just to break even over that month.
BTC, by contrast, cost $86 on the same notional — more than 7× cheaper.
Why memecoins always top the list
Funding rates reflect market sentiment imbalance. When a pair trends sharply upward, retail traders pile into longs faster than the market can absorb — the funding rate rises to rebalance.
Memecoins have structural reasons to carry high funding:
- Retail-dominated: Meme tokens attract speculative retail buying more than institutional hedging. Retail tends to go long, rarely hedges short.
- No natural short sellers: Miners and validators (who naturally short BTC/ETH to hedge) don't exist for memecoins. The short side needs to be lured with funding payments.
- Narrative cycles: Memecoins trend violently. During a narrative cycle, funding can spike to 0.30–0.50% per 8 hours (300–500%+ annualised).
- No fundamental anchor: With no revenue or protocol to value, traders rely entirely on momentum — amplifying one-sided sentiment.
Peak funding spikes this month
Daily averages obscure the extremes. Several pairs hit single-period spikes well above their monthly average:
| Pair | Peak 8h rate (single period) | Annualised at peak | Date |
|---|---|---|---|
| PEPE | +0.3742% | 408% | Jul 3 |
| WIF | +0.2914% | 317% | Jul 3 |
| BONK | +0.2281% | 249% | Jul 4 |
| DOGE | +0.1823% | 199% | Jul 5 |
| SOL | +0.0612% | 66% | Jul 7 |
During the July 3 spike, a PEPE long at $5,000 notional paid $18.71 in a single 8-hour window. Three periods in a day: $56 paid to shorts.
What BTC and ETH actually cost this month
For comparison, BTC and ETH funding stayed close to the 0.01% per 8h baseline in July — the rate that represents neutral market sentiment. The only notable exception was a brief BTC spike to 0.045% on July 7 when BTC crossed $110,000 for the first time.
BTC funding July 1–14 average: 0.0096% per 8h = $86/month per $10k notional
ETH funding July 1–14 average: 0.0112% per 8h = $101/month per $10k notional
PEPE July 1–14 average: 0.0721% per 8h = $649/month per $10k notional
Holding PEPE cost 7.5× more than holding BTC long — before any directional loss.
Cheapest pairs to hold long
On the other end, these pairs had the lowest (sometimes negative) funding in July — meaning shorts were paying longs:
| Pair | Avg 8h rate | Note |
|---|---|---|
| LINK | −0.0031% | Longs earned funding |
| UNI | −0.0018% | Longs earned funding |
| AAVE | −0.0011% | Near neutral |
| XRP | +0.0087% | Slightly above baseline |
When funding is negative, the market is net short — longs collect the payment. LINK longs actually earned a small amount in July. This is unusual and typically doesn't last, but it briefly created an interesting long bias for sentiment reasons.
How to use this data as a trader
- Check funding before entering any swing long: if the monthly cost is above 3% of notional, the entry needs a very strong thesis to justify it.
- Use high funding as a contrarian signal: persistently elevated rates often precede corrections. Funding alone doesn't confirm direction, but it narrows the risk/reward.
- Compare cross-exchange rates: the same pair sometimes charges 0.05–0.10% more per period on one exchange than another. Our arb scanner shows these gaps live.
- Factor funding into your TP target: if you're holding a PEPE long for 30 days, your break-even isn't zero — it's +6.5% just to cover funding. Adjust your take-profit accordingly.
→ Calculate your exact funding pain · → Live funding rates now
FAQ
Which crypto perpetual pairs have the highest funding rates?
In July 2026, memecoin perpetuals (DOGE, PEPE, SHIB, WIF) consistently showed the highest funding rates — often 3–8× the BTC baseline. High rates reflect crowded sentiment: when too many traders are long, longs pay shorts.
How much does a high funding rate cost me per day?
Funding is paid every 8 hours. A 0.10% rate on a $1,000 notional position costs $1.00 per 8h period, or $3.00 per day, or ~$90/month. At extreme memecoin rates (0.30–0.50%), that's $9–$15/day on $1,000 notional.
What is a normal funding rate?
0.01% per 8 hours (0.03% daily, ~11% annualised) is the baseline. BTC and ETH hover near this in neutral markets. When altcoin funding exceeds 0.05% per period, the pair is expensive to hold long.
Can I avoid funding by holding spot?
Yes. Spot holdings pay no funding. The trade-off is no leverage and no easy short access. For traders who want directional exposure without funding drag, spot is usually cheaper than a perpetual with elevated funding.
How do I calculate the annual cost of funding?
Annual cost % = funding rate per 8h × 3 × 365. Example: 0.05% per 8h = 54.75% annualised. This means holding a perpetual long at 0.05% funding costs more than the average stock market annual return just in funding fees.