SOL’s open interest is 20% as the traders’ eye line increases to $100
Main Receptors:
Despite SOL's underperformance compared to its peers, Solana maintains its market dominance in terms of DEX volume and TVL.
Easing selling pressure from volatile geopolitics and a resurgence of memecoin activity could bring SOL price rallying towards $100.
Solana native token SOL (SOL) rose 10% in five days, hitting a three-week high on Friday. This price movement caused Brent crude oil prices to drop 8% after the US and Iran announced an extension to the ceasefire. Demand for SOL futures has increased with open interest up 20% since Sunday, prompting traders to question whether the SOL price is stuck at $100.
Total open interest in SOL futures rose to $4.2 billion on Friday, from $3.5 billion on Sunday. While the increased appetite for favorable positions indicates the participation of institutional investors, longs (buyers) and shorts (sellers) are always aligned. However, any eventual imbalance in demand for leveraged positions should be reflected in the perpetual futures markets.
In exceptional circumstances, the annual funding rate should be between 5% and 10% to cover the cost of capital.
Data showing a 3% rate suggests bulls are low on confidence, although this is a far cry from the high levels of fear seen on April 7 when the price of SOL fell below $80. A negative cash flow indicates that shorts are paying to hold open positions, which is unusual in cryptocurrency markets.
Despite the recent gains, SOL underestimates the broader cryptocurrency market by 13% by 2026. The decline in demand for decentralized applications (DApps) has played a role, but the Solana network remains a strong competitor due to its vice-leader position in total value-locked and decentralized exchange (DEX) volumes.
Solana Network DApp revenues have been declining over the past few months, currently totaling around $16 million per week. However, this approach is not unique to Solana; DApps on the Ethereum network raised $10 million in revenue last week, while BNB Chain stood at $4 million. Fading interest in DEX activity remains the main driver behind this decline in revenue in the industry.
Memecoin rally, shorts cover could send SOL to $100.
A number of memecoins jumped 40% or more between Wednesday and Friday, contributing to higher demand for SOL futures.
In the year At the beginning of 2025, in the previous memecoin rally, Solana appeared to be the leader in terms of users and activity, especially after the official Trump (TRUMP) memecoin was launched. Therefore, any sign of increased demand for memecoins is seen as a positive indicator for the price of SOL.
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Solana has emerged as a strong contender for the next generation of DApp users focused on AI agents or predictive marketing. The strength of the validators and the integrated user experience offered by Web3 wallets is a compelling case for the continued SOL price rally.
In turn, weak demand for bullish futures poses little obstacle to a resurgence of SOL. Declining pressure from the war in Iran could act as a catalyst for SOL shorts to cover their positions, providing the necessary spark to push higher toward $100.
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