Key Takeaways:
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Sol is recovered above $ 200, but the weak onchain activity and increased competition limit the odds of a sustainable rally.
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Businessmen show a small convincing, but inert network growth and market sharing of sharing Sol’s reversal.
Solana’s native token (Sol) climbed up to $ 200 on Tuesday, recovering from Friday’s flash crashing that pushed prices up to $ 167. However, a record of $ 1.73 billion in long liquids left a long -term mark on the Sol’s derivatives market, which motivated entrepreneurs to ask if the Bullish Momentum was in the This.
The demand for leveraged bullish positions remains masked, as the eternal futures rate of funding is emerging around 0%. Under normal market conditions, this indicator usually ranges between 6% and 12%, showing that longs (consumers) are willing to pay to maintain their exposure. Notably, Sol’s funding rate before Friday’s crash is around 4%, which is below the neutral range.
When the funding rate becomes negative, it generally indicates that shorts (sellers) are dominant, even though it rarely lasts due to the cost of maintaining the bets. Although, the continued strain on the SOL derivatives market is likely to reflect the broader damage to the Friday’s liquid that has been caused by the cryptocurrency sector.
Solana’s network activity is weak in the midst of increasing competition
Solana’s onchain metrics show an ongoing lack of bullish momentum, even with Sol Trading 31% below its $ 295 all the time From January. Network activity has been struggling to recover traction since the Memecoin Frenzy earlier in 2025, and Blockchain also lost its lead in decentralized exchanges (DEX) while new competitors are getting market sharing.
Decentralized applications (DAPP) in Solana formed $ 35.9 million in weekly income, while network fees cost $ 6.5 million, marking a 35% collapse from last month. This slowdown weakens the demand for Sol as a payment token for the blockchain calculation. Lower activity also reduces staking yields for Sol holders, increasing additional downside pressure.
In contrast, competing networks such as the BNB chain, Ethereum and Hyperliquid have seen their fees rise significantly, mainly at Solana’s expense. The Awesome -The $ 59.1 million of BNB chain success of four.meme.
Although a person assumes the momentum of the BNB chain is temporary, fees throughout the Ethereum ecosystem have emerged. Layer-2 Scale networks Like the base, the arbitrum and polygon each saw a weekly fee jump 40% or more. UNISWAP recorded the highest weekly fees weekly for $ 83.8 million, driven by activity at Ethereum and Base. Meanwhile, Hyperliquid also benefited from volatility in the Friday market, posting a well -known spike in trading fees.
To measure if SOL entrepreneurs have become bearish, it is advisable to evaluate the balance between the call (buy) and place (sell) the options.
The sol put-to-call volume ratio in the derivit remained below 90% for the past week, the sign of weak demand for neutral or bearish positions. Historically, when entrepreneurs expect a correction, this measure increases above 180%-a level last reached in Sept. 20, following a 11-day, 26.7% rally at Sol’s price.
Related: The BNB chain sees the user’s record activity, transactions up to 151% in 30 days
While Sol’s derivatives may be bent by volatility from Friday’s flash crash, the onchain activity continues to be weak while rival blockchain gets a momentum about. The increase of Aster, hyperliquid And Uniswap comes directly to the cost of Solana’s reversed potential.
Although merchants are not clearly bearish to Sol, not likely that a single event, such as potential approval of funds solana exchanged in the United States, is sufficient to drive its price to $ 300 in the near term.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
