Key results:

• Open percentage of Futures Sola increased to a 2-year level, reflecting the growing institutional interest.

• The growing competition from other blockchains and neutral financing rates still suppressed the stubborn shoots of Sola.

Solana SOL (SOL) could not be maintained by a stubborn shoot after obtaining 10% between Monday and Thursday. The cryptocurrency showed weakness after testing the USD 180 in May several times, but the growing interest in traders with leveled positions can open the path to 200 USD and more.

On Wednesday, 46.2 million SOL reached the total open interest on Sol Futures, the highest for over two years and increased by 22% compared to the previous month. The demand of buyers is always corresponded to by sellers, but the augment in activity signals has increased the participation of institutional investors.

From 7.4 billion dollars in open Futures positions, Sol pays more attention from experienced market participants. This creates more possibilities of arbitration strategies, such as “trading transfer”, in which investors buy SOL on the spot and sell a Futures contract. The market of liquid and energetic derivative instruments supports these transactions.

Even with these events, many SOL investors are probably disappointed. The current level 155 USD remains well below the high level of USD 294. Meanwhile, the total cryptographic market capitalization is only 12% below its record. The keen decline in the Solana network activity led investors to reduce expectations for future SOL profits, which increases USD 200 less likely.

Decentralized exchange activity (DEX) on salt fell to $ 10.5 billion a week, compared to USD 29.2 billion just 30 days earlier. What’s more, the peak of the 50% Dex market at the beginning of January turned out to be unbalanced, especially when commercial volumes increased on the BNB chain and hyperlik became a clear leader in the eternal future.

Unlike the Ethereum ecosystem, which is associated with greater friction due to its rely on the scaling solutions of layer 2, the BNB chain competes directly with Solana, offering low fees and integrated tools for starting tokens. Its trouble -free connection with the exchange of binance also gives the BNB chain a clear advantage in the user’s experience.

SOL Neutral financing as competition weakens investors’ trust

To assess whether traders turn to SOL due to the last worse competition and growing competition, it is useful to examine the funding rates of eternal Futures. On the neutral market, financing should be from 5% to 15% per year, signaling that buyers (long) pay a bonus for maintaining their positions.

The SOL financing rate fluctuated between the neutral level and slightly bear, clearly departing from the negative 7% noticeable on Saturday. More importantly, in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in the last 30 days in Over the past 30 days in the last 30 days in the last 30 days.

Related: DEFI Development to re -supplement the Solan plan worth USD 1 billion after SNAG

Speculation around the potential point exchange fund (ETF) for SOL in the United States remain the most vital catalyst for brief -term prices. Bloomberg analysts are convinced that the American Commission of Securities and Exchange will approve ETF for Litecoin (LTC), SOL and XRP by the end of the year.

At the moment there is no clear sign that Sol is on the right track to reach USD 200, especially considering the neutral financing rates in constant timely contracts. In addition, the growing competition between decentralized applications probably played an vital role in weakening investors’ expectations towards SOL.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.