Solana Futures Surge With $5.75 Billion In Open Interest
BULLISH
SOL
ETF
APRIL
ETFInterest in Solana futures has reached unprecedented highs, with $5.75 billion in open positions as of April 30. However, this dramatic increase in leverage usage raises questions about the direction SOL’s price might take in the coming weeks.
In Brief
- Open interest on SOL futures reached $5.75 billion as of April 30, ranking Solana third in the crypto derivatives market.
- The $140 support has held for a week, indicating increased investor confidence.
- Despite negative funding rates, the Solana ecosystem shows remarkable strength, with a TVL of $9.5 billion.
- The prospect of a spot Solana ETF approval in October could push SOL price towards $200 before then.
Strong institutional interest rising
On April 30, open interest on Solana futures reached 40.5 million SOL, a 5% increase from the previous month. This level now approaches the highest ever recorded.
In value terms, this represents $5.75 billion in futures positions, making SOL the third most traded asset in the crypto derivatives market, exceeding demand for XRP derivative products by more than 50%.
This growth reflects increasing institutional interest in Solana. The recent break above the $150 mark with an impressive 8% gain over 24 hours signals renewed investor optimism.
This bullish move follows a consolidation period during which the $140 support held firm for a full week.
However, earlier data revealed a more nuanced reality. The funding rate for SOL perpetual futures was negative at the end of April, indicating increased demand for short positions. The recent bullish movement might signal a shift in trader sentiment.
The Solana ecosystem demonstrates its fundamental strength
While reaching $200 might seem ambitious, recall that SOL traded near $195 in mid-February. With the current price at $151.78, this target appears more attainable now. Beyond the memecoins that have brought recent fame, Solana offers a diverse and high-performance ecosystem.
With $9.5 billion in total value locked (TVL), Solana ranks second among all blockchains. Its ecosystem also includes liquid staking protocols, lending platforms, and synthetic derivative products.
Several decentralized applications generate impressive revenues: Meteora collected $19.1 million in one week, followed by Pump.fun with $18.6 million.
Even more remarkably, Solana leads decentralized exchange volumes with $21.6 billion in weekly activity, surpassing the entire Ethereum ecosystem and its layer 2 solutions.
The possible approval of a spot Solana ETF by the US SEC by October 10, estimated at a 90% chance of success according to analysts, could serve as an additional catalyst. With the solid fundamentals of its ecosystem and the current price momentum, SOL could well surpass $200 in the coming months.
