Solana open interest reaches all-time high… spot price in decline

JOON HYOUNG LEE

Summary

Cointelegraph reported that Solana (SOL) futures open interest reached $71.8 million, an all-time high.
Meanwhile, Solana's spot price is showing a downward trend, falling 4.81% from the previous day and 17.98% from a week ago.
Cointelegraph warned that if price declines coincide with rising open interest and an increasing funding rate (funding rate), it could lead to an overly leveraged market that would hit long position investors.

Solana (SOL) futures open interest (OI) has reached an all-time high.

Cointelegraph reported on the 25th (local time), citing Coinglass data, that Solana's futures open interest stood at $71.8 million (about 100 billion won) as of that day. Cointelegraph said "(the open interest) is an all-time high" and reported that "the total open interest stands at $14.5 billion (about 20.4 trillion won)."

*Solana (SOL) open interest (OI) trend. Photo courtesy of Coinglass*

However, Solana's spot price is declining. As of 11:35 p.m. that day, Solana was trading at $203.33 on CoinMarketCap, down 4.81% from the previous day. Compared with a week earlier, it was down 17.98%. Cointelegraph said, "If rising open interest and an increasing funding rate coincide amid falling prices, it could lead to an excessively leveraged market where long (buy) position investors are suddenly hit."

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