Market Stress Index (MSI): Methodology and How to Read It
What the MSI measures
The Market Stress Index is GasNow's own 0–100 indicator of structural risk in the crypto market. Where the Fear & Greed Index captures sentiment, the MSI looks at positioning and flows: how much leverage traders carry, how hard prices are moving, and whether stablecoin capital is entering or leaving. It is recalculated by GasNow's data pipeline every few minutes and shown live on the Market Stress Index page.
The six components and their weights
Each component is scaled to 0–100 with a fixed formula, then combined with these weights:
| Component | Weight | How it is scaled |
|---|---|---|
| Funding rates | 25% | Average absolute perpetual funding rate across tracked symbols. A rate of 0.1% per funding period maps to 100. |
| Open interest | 20% | Total open interest in USD across tracked perpetual contracts. $50 billion maps to 100. |
| Volatility | 20% | Average absolute 24-hour price change of the tracked contracts. A 10% average move maps to 100. |
| Liquidations | 15% | 24-hour liquidations. Currently scored 0 because free data sources do not provide reliable liquidation totals. |
| BTC dominance | 10% | Lower Bitcoin dominance scores higher, since capital rotating into altcoins historically coincides with more fragile markets. 50% dominance or more scores 0. |
| Stablecoin supply | 10% | A falling 24-hour USDT and USDC supply scores higher, as it signals capital leaving the ecosystem. A 10% daily drop maps to 100. |
The final score is the weighted sum, rounded to a whole number. Because the liquidation component is currently fixed at 0, the effective maximum today is 85.
Reading the score
- 0–30, Low Stress: funding is moderate, leverage is not extreme and prices are calm.
- 31–60, Neutral: some components are elevated. Worth watching, not alarming.
- 61–100, High Stress: crowded leverage and large moves. These are the conditions in which liquidation cascades tend to happen.
The page also lists short insights, such as "Funding elevated" or "Volatility expanding", generated when a component crosses a threshold.
Data sources
Derivatives data comes from public exchange APIs with automatic fallback: Binance, then OKX, then Bybit, then Hyperliquid, symbol by symbol. Market dominance comes from CoinGecko. Stablecoin supply covers USDT and USDC.
Limitations
The MSI uses fixed scales chosen for readability, not statistical normalization, so its absolute level shifts as the market grows. It covers the major perpetual contracts tracked by GasNow, not the entire derivatives market. It is a context tool, not a trading signal or financial advice.
Frequently asked questions
How often is the Market Stress Index updated?
GasNow recalculates it every few minutes from fresh derivatives, market and stablecoin data.
What does a high MSI mean?
High funding, high open interest and large price moves at the same time. These are conditions in which forced liquidations become more likely.