Last night, I saw the funding rate become extreme again, that feeling of "taking sides seems like you'll get educated" is quite familiar... I usually don't rush to be a hero and take the other side of the trade; I first ask myself: Is this wave driven by emotional pressure or structural gaps? If everyone is rushing in the same direction, I might try a small position to go against the trend, but only if I can accept being squeezed further; if the volatility has already torn the market apart (low liquidity, many spikes), I’d rather hide and wait until the leverage is cleaned out. Anyway, extreme rates love to punish those who confidently bet it will revert to normal soon. I see simple as a trap: when I see extremes, I blindly counter, sounds cool, but it’s pretty much the same as chasing highs and selling lows.

By the way, I thought of the modular/DA set, developers talking excitedly like assembling stained glass windows, users looking confused and voting with their feet… The market is similar, no matter how beautiful the narrative, short-term funds still only care if they can squeeze the other side out. That’s all for now, I won’t be fuel today.