The main dishes to remember:
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The open -end -term open interest has increased to a 2 -year summit, reflecting the growing institutional interest.
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The increase in competition from other blockchains and neutral financing rates continues to satiate the bullish grounded momentum.
Solana’s soil (soil) failed to hold its bullish momentum after winning 10% between Monday and Thursday. Cryptocurrency showed weakness after testing the level of $ 180 several times in May, but the growing interest of traders for leverage positions could open the way to $ 200 and beyond.
On Wednesday, the total interest opened on ground contracts reached 46.2 million soil, the highest in more than two years and up 22% compared to the previous month. Buyers’ demand is still twinned by sellers, but the increase in activity signals has increased the participation of institutional investors.
With $ 7.4 billion in open term posts, Sol attracts the attention of wise market players. This creates more opportunities for arbitration strategies such as “commercial transport”, where investors buy soil on the cash market and sell the contract in the long term. A market for liquid and active derivatives supports these trades.
Even with these developments, many soil investors are probably disappointed. The current level of $ 155 remains well below the record level of $ 294. Meanwhile, the total market capitalization of cryptography is only 12% below its record. The clear drop in Solana network activity has led investors to reduce expectations for future soil gains, which accounts for $ 200 less.
The activity of decentralized exchanges (DEX) on Solana dropped to $ 10.5 billion per week, compared to $ 29.2 billion only 30 days earlier. In particular, the peak market share of 50% DEX in early January proved to be unbearable, especially since trading volumes increased on the BNB channel and the hyperliquid has become the clear leader in perpetual assets.
Unlike the Ethereum ecosystem, which involves more friction due to its dependence on layer 2 scaling, the BNB chain is in competition directly with Solana by offering low costs and integrated tools for token launches. Its transparent connection with the exchange of binance also gives the BNB channel a clear advantage in the user experience.
Soil neutral financing as competition weakens the confidence of investors
To assess whether traders are running down on ground due to its recent sub-performance and increasing competition, it is useful to examine the financing rates of perpetual term contracts. In a neutral market, funding should vary between 5% and 15% per year, reporting that (long) buyers pay a premium to occupy their positions.
The soil financing rate fluctuated between neutral and slightly lower levels, clearly moving away from the 7% negative observed on Saturday. Most importantly, Sol Futures has failed to keep the annualized financing threshold of 15% in the last 30 days, indicating a strong lack of strong feeling.
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Speculations around a potential grant funds (ETF) for soil in the United States remain the most important short-term price catalyst. Bloomberg analysts are convinced that the American Commission for Securities and Exchange will approve the ETF for Litecoin (LTC), Sol and XRP by the end of the year.
Currently, there is no clear sign that Sol is on the right track to reach $ 200, in particular given neutral financing rates in perpetual term contracts. In addition, the increase in competition between decentralized applications has probably played a major role in weakening the expectations of investors for soil.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
