key takeaways:
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Sol’s futures reached a 2 -year high, depicting institutional interest in the open interest.
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The growing competition from other blockchain and neutral funding rates continues to reduce the speed of the soul.
Solana’s Sol (Fifth note of musical scale) After achieving 10% between Mondays and Thursdays, he failed to catch the pace of speed. Cryptocurrency has shown weakness after testing a level of $ $ 180 several times in May, but the growing interest of traders in leveraged positions can open a $ 200 and beyond way.
On Wednesday, total open interest Sol futures reached 46.2 million souls, the highest in two years and more than 22% from the previous month. Demand from buyers always coincides by vendors, but an increase in signs of activity increased participation from institutional investors.
With $ 7.4 billion in open futures positions, Sol lover is attracting more attention than market participants. It creates more opportunities for mediation strategies such as “Carrie Trade”, where investors buy souls on the spot market and sell futures contracts. A liquid and active derivative market supports these trades.
Even with these developments, many Sol investors are likely to be disappointed. The current $ 155 level is below $ 294 all-time high. Meanwhile, the total crypto market cap is just 12% below its record. A sharp decline in Solan Network activity has inspired investors to reduce expectations for future solid benefits, leaving a lower probability of $ 200.
The decentralized exchange (DEX) activity fell to $ 10.5 billion per week on Solana, below $ 29.2 billion just 30 days ago. More especially, in early January 50% Dex Market Share Peak Peak proved to be uncertain, especially trading volumes on BNB chain increased and hyperlicid became a clear leader. Evergreen futures,
Unlike atherium ecosystem, which involves more friction due to its dependence Layer -2 scaling The solution competes with Solna directly by offering low fees and integrated equipment for the BNB series token launch. Its spontaneous relationship with Binance Exchange gives a clear edge to the BNB series in a user experience.
Sol funding as competition weakens neutral investor trust
To assess whether traders are recession on Sol due to their recent underperformance and rising competition, it is always useful to check the funder funding rates. In a neutral market, funding should be between 5% and 15% annually, indicating that buyers (longs) are paying a premium to hold their positions.
The funding rate for SOL has upsurized between neutral and slightly recession levels, clearly moving away from the negative 7% seen on Saturday. More importantly, Sol Futures have failed to keep 15% annual funding above the threshold in the last 30 days, indicating a lack of strong feeling.
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Speculation around a potential spot exchange-traded fund (ETF) for Soul in the United States remains the most important short-term value catalyst. Bloomberg Analysts believe The US Securities and Exchange Commission will approve ETF for LiteCoin (LTC), Sol, and XRP by the end of the year.
At the moment, there is no obvious indication that Sol is on track to reach $ 200, especially with neutral funding rates in futures. Additionally, the increasing competition among decentralized applications has played a major role in weakening the investor’s expectations for Sol.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
