Litecoin (LTC) Funding Rate

Litecoin Funding Rate Overview

The Litecoin (LTC) perpetual funding rate is a periodic payment exchanged between long and short holders of LTC perpetual futures contracts, designed to keep the perpetual price anchored to the underlying spot price. When LTC funding is positive, longs pay shorts — signalling bullish leveraged crowding. When negative, shorts pay longs — often during a capitulation or heavy hedging flow. Sharpe aggregates LTC funding rates from 13 exchanges with each exchange's rate normalized to annualized APR (APR = rate × 8,760 / interval_hours) so you can directly compare 1-hour rates from Hyperliquid against 8-hour rates from Binance, Bybit, and OKX.

About Litecoin Perpetual Funding

Litecoin (LTC) perpetual futures trade $300M to $600M OI on Binance, Bybit, OKX, Bitget, and Kraken. LTC funding has a remarkably stable baseline near 0.005% per 8h — one of the calmest profiles among top-30 coins, reflecting LTC's mature, holder-heavy base and its role as a 'digital silver' alternative to BTC. LTC funding spikes cyclically around halving events (every 4 years, next ~Aug 2027) and around periodic ETF speculation (Canary Capital LTC ETF filing 2024). LTC has no staking yield, no burn mechanism, and predictable supply schedule, giving funding a clean, almost Bitcoin-like character at smaller scale. Privacy-feature activation (MWEB) adds occasional regulatory-risk funding dips on negative news (Korean exchange delistings 2022).

How to Read the LTC Funding Rate

LTC funding is a late-cycle rotation signal. When LTC funding exceeds BTC funding by 10+ bps per 8h, retail is rotating from 'expensive' BTC into 'cheaper' LTC — a classic late-cycle pattern. LTC halving narratives produce predictable 4-6 month pre-halving funding ramps (2015, 2019, 2023 all printed this pattern). ETF filing news produces 3-7 day funding spikes that typically mean-revert unless approval timeline is imminent. Kraken and Coinbase LTC perp/futures (CME) provide the cleanest institutional read; when CME basis widens vs. Binance funding, ETF flow anticipation is building. LTC correlation with BCH funding is high — paired moves confirm retail rotation thesis.

LTC Funding Rate Signals

Use the LTC funding rate as three separate signals. First, as a sentiment indicator: persistent 8-hour rates above 0.03% (~33% APR) often precede Litecoin corrections as leveraged longs crowd. Second, as a carry opportunity: hold long spot + short perp to collect the funding payment while staying delta-neutral — use Sharpe's arbitrage calculator to size the trade. Third, as a cross-exchange divergence signal: when Binance LTC funding diverges meaningfully from OKX or Hyperliquid, the positioning asymmetry often precedes a volatility expansion. Sharpe's funding rate terminal and leaderboard surface these divergences automatically.

Frequently Asked Questions

What is the current Litecoin funding rate?

Litecoin (LTC) funding rates change every 1 or 8 hours depending on the exchange. Open Sharpe's funding rate terminal or the coin explorer for the live cross-exchange rate table plus an annualized APR column, updated on each exchange's settlement window. Historical rates are also tracked so you can compare today's rate to the 7-day, 30-day, and 90-day averages.

Which exchanges have the highest Litecoin funding rate?

The exchange with the highest LTC funding rotates minute-to-minute. Sharpe's funding rate leaderboard ranks all 5,000+ perpetual pairs across 13 tracked exchanges by current rate or annualized APR — sort by APR and filter for LTC to see the highest-yielding venue right now. Extreme rate spikes typically reflect either leveraged crowding on one venue or dislocation from spot during volatile sessions.

How is the Litecoin funding rate calculated?

Exchange-calculated funding rates combine three inputs: the premium index (LTC perpetual price minus the spot reference index), the interest rate component (typically fixed at 0.01% per 8 hours), and a clamp function that caps the final rate at ±0.375% on most exchanges. The formula is: funding = clamp(premium_index + interest_rate, ±cap). Different exchanges use slightly different index sources, which explains the cross-venue rate differences.

What is the annualized APR on Litecoin funding?

APR = rate × (8,760 / interval_hours). For 8-hour funding (Binance, Bybit, OKX), a 0.01% rate annualizes to 10.95% APR. For 1-hour funding (Hyperliquid), the same 0.01% rate annualizes to 87.6% APR. Sharpe's table auto-normalizes every LTC funding rate to APR so you can rank yields across exchanges without manual conversion.

Does Litecoin funding rate arbitrage work?

Yes, when rates are high enough to overcome trading fees and execution slippage. The classic trade is long spot LTC + short LTC perp on the same exchange — you earn the funding rate each settlement while staying delta-neutral. Historical BTC and ETH funding rate arbitrage has yielded 10–40% annualized in bull markets. Use Sharpe's arbitrage calculator to size the trade with realistic fee and holding assumptions before execution.

Where does Sharpe get Litecoin funding rate data?

Sharpe fetches LTC funding rates via direct REST API calls to each of the 13 supported exchanges — no third-party aggregator dependency. Rates update on each exchange's settlement schedule (every 1 hour for Hyperliquid and dYdX v4, every 8 hours for Binance, Bybit, OKX, and most others). Historical data is stored for trend analysis and accumulated-carry calculations.