According to Cointelegraph: Solana, the infrastructure for decentralized applications, has seen a significant slump in both open interest and price over the past 24 hours, mirroring the broader downturn across the cryptocurrency market. Despite this sudden drop, many traders view the current conditions as a ripe opportunity.
CoinGlass data shows that on April 14, open interest in Solana (SOL) stood at $1.62 billion, a fall of around 21% from the previous day. The open interest represents the total value of all outstanding or unsettled Solana futures contracts across exchanges.
Simultaneously, Solana's price declined by 11% to $136.54 in the last 24 hours, according to CoinMarketCap data. This swift drop in price led to the liquidation of $36.55 million worth of traders' long positions, potentially dispiriting those who may have been anticipating a price surge leading up to the Bitcoin halving on April 20.
The market-wide price reduction inspired prominent trader GCR Classic to urge followers to seize the moment as a "good opportunity to scale into high conviction tokens.” Similarly, crypto entrepreneur Kyle Chasse conveyed optimism about altcoins possibly gaining 20-30% by the following Monday.
However, as Glassnode points out, drawdowns have been significantly harsher during previous euphoria phases, implying conditions are not as drastic as they may seem. It adds that there have only been two notable drawdowns in the current market since breaking all-time highs on March 5.
Related issues affecting Solana's performance focus on recent network congestion. Recent intermittent congestion on the Solana blockchain has forced several crypto projects to postpone their launches. Solana developers have given assurances of working towards a fix by April 15.
