The open interest of Solana (SOL) futures contracts has reached a two-year high, exceeding 7.4 billion USD, reflecting strong interest from institutional investors. The main reason is believed to be speculation about the potential approval of a Solana ETF in the United States, which could drive SOL prices up. Nevertheless, the current price of SOL is only 155 USD, a 10% increase since the beginning of the week but still much lower than the historical peak of 294 USD.
However, the upward momentum is constrained by competition from other blockchains and a neutral funding rate. Solana's network activity has also declined, with trading volume on DEXs dropping from 29.2 billion USD to 10.5 billion USD over the past 30 days. SOL futures have not maintained an annual funding rate above 15%, indicating that market sentiment is not yet strongly optimistic.
However, if the Solana ETF is approved, this could be a key factor driving SOL prices in the short term.
