To be honest, seeing the funding rate start to tilt heavily once again gives me that “crowded into the same vehicle” feeling. My first reaction isn’t to be a hero and take the opposing side—it’s to first ask myself: how much drawdown can I withstand this time? When the rate gets extreme, going against it can definitely be lucrative, but to be blunt, you might also be carried higher by it again—especially once the news cycle kicks in and it bursts upward, leaving you no real chance to add positions in a dignified way.

What I use more often now is: shrink my position first. If I can, I’ll buy some protection with options—better to make a little less and sleep at night. If I really do take the opposing side, it’s only a small test position; if I’m wrong, I admit it immediately and don’t try to argue with the market. I also can’t be sure which extreme is the turning point, but with risk control in place, opportunities will always come.

By the way, I’ve found myself resonating lately with those new L1/L2 projects rolling out incentives to drive TVL. As for the veteran users complaining about “mining, picking up, and selling,” I get the sentiment... It’s lively, sure, but the livelier it gets, the easier it is to get people’s emotions off course. And when the funding rate turns extreme, it’s more like an accelerator. For now, that’s it.