Perpetual Swap (Perp)
Definition
A perpetual swap is a crypto derivative similar to a futures contract but without an expiry date. Prices are kept aligned with the spot market through a 'funding rate' — a periodic payment between long and short traders. Positive funding means longs pay shorts (market is bullish), negative funding means shorts pay longs (market is bearish). Perps account for the majority of crypto derivatives volume.
Why Does This Matter?
Understanding Perpetual Swap (Perp) is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Perpetual Swap (Perp) feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.