Secret takeaways:
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SOL recuperated above $200, however weak onchain activity and increasing competitors limitation the chances of a sustainable rally.
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Traders reveal little bearish conviction, yet stagnant network development and moving market share keep SOL’s benefit topped.
Solana’s native token SOL (SOL) climbed up back above $200 on Tuesday, recuperating from Friday’s flash crash that pressed costs to $167. Still, the record $1.73 billion in long liquidations left an enduring mark on SOL’s derivatives market, triggering traders to question whether the bullish momentum has actually faded and if the token can reasonably strike $300 this cycle.
Need for leveraged bullish positions stays soft, as the continuous futures financing rate hovers around 0%. Under typical market conditions, this sign usually varies in between 6% and 12%, revealing that longs (purchasers) want to pay to keep their direct exposure. Especially, SOL’s financing rate before Friday’s crash was around 4%, currently listed below the neutral variety.
When the financing rate turns unfavorable, it typically shows that shorts (sellers) control, though this seldom lasts long due to the expense of preserving those bets. However, the continuous stress in SOL’s derivatives market most likely mirrors the wider damage Friday’s liquidations caused throughout the cryptocurrency sector.
Weak Solana network activity in the middle of increased competitors
Solana’s onchain metrics expose a consistent absence of bullish momentum, even with SOL trading 31% listed below its $295 all-time high from January. Network activity has actually had a hard time to restore traction given that the memecoin craze previously in 2025, and the blockchain has actually likewise lost its lead in decentralized exchanges (DEXs) as brand-new rivals gain market share.
Decentralized applications (DApps) on Solana produced $35.9 million in weekly profits, while network charges amounted to $6.5 million, marking a 35% drop from the previous month. This downturn deteriorates need for SOL as the payment token for blockchain calculation. Lower activity likewise lowers staking yields for SOL holders, including more disadvantage pressure.
On the other hand, contending networks such as BNB Chain, Ethereum and Hyperliquid have actually seen their charges increase considerably, mainly at Solana’s cost. BNB Chain’s outstanding $59.1 million in weekly charges highlights the success of four.meme, a memecoin launchpad platform totally incorporated with Binance Wallet and placed as a direct competitor to Solana’s Pump.fun.
Even if one presumes BNB Chain’s momentum is short-lived, charges throughout the Ethereum environment have actually risen. Layer-2 scaling networks such as Base, Arbitrum and Polygon each saw weekly charges leap by 40% or more. Uniswap tape-recorded its highest-ever weekly charges at $83.8 million, driven mainly by activity on Ethereum and Base. On the other hand, Hyperliquid likewise gained from Friday’s market volatility, publishing a significant spike in trading charges.
To assess whether SOL traders have actually turned bearish, it works to take a look at the balance in between call (buy) and put (sell) alternatives.
The SOL put-to-call volume ratio on Deribit has actually stayed listed below 90% for the previous week, signifying weak need for neutral or bearish positions. Historically, when traders anticipate a correction, this metric increases above 180%– a level last reached on Sept. 20, following an 11-day, 26.7% rally in SOL’s rate.
Related: BNB Chain sees record user activity, deals up 151% in 1 month
While SOL’s derivatives metrics might have been misshaped by the volatility from Friday’s flash crash, the continuous weak point in onchain activity as competing blockchains gain momentum is worrying. The increase of Aster, Hyperliquid and Uniswap has actually come straight at the cost of Solana’s upside capacity.
Even if traders are not clearly bearish on SOL, it is not likely that a single occasion, such as the prospective approval of area Solana exchange-traded funds in the United States, would suffice to drive its rate to $300 in the near term.
This post is for basic info functions and is not meant to be and must not be taken as legal or financial investment suggestions. The views, ideas, and viewpoints revealed here are the author’s alone and do not always show or represent the views and viewpoints of Cointelegraph.
Source: Coin Telegraph.
