[Analysis] "Solana fails to recover $140…Derivatives market weakness · on-chain slowdown impact"

Solana (SOL) continued its weakness, failing to recover the $140 level despite a partial rebound in recent losses.

On the 25th (local time), Cointelegraph reported that Solana was trading in the $138 range amid a broader crypto market rally, but had underperformed major altcoins after falling 30% over the past month.

Cointelegraph pointed to the funding rate for Solana perpetual futures turning negative in the derivatives market and a decrease in network on-chain activity as factors weakening investor sentiment. In fact, Solana futures open interest (OI) fell 27% in a month, and the premium of monthly futures over the underlying asset also dropped to 0%, showing a sharp contraction in demand for long positions across the market.

On-chain indicators also showed continued bearish signals. The network's total value locked (TVL) fell to $10.5 billion, down 20% from a month earlier, and weekly fee revenue hit its lowest level since May. However, it maintained an advantage over competing chains in the number of active wallets and transaction counts, suggesting that network activity has not been entirely curtailed.

The outlet forecasted, "Solana has rebounded 14% from last week's low ($121.50), but it will be difficult to secure sustained upward momentum until the derivatives market structure recovers."