Key Takeaways:
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Solana’s onchain growth supports the current rally, but denial of the Dex Market Share Signal of careful sentimental sentiment to the businessman.
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The Perpetual Futures Rate of Sol near Neutral suggests a limited bullish momentum.
Solana’s native token, Sol (Sol), briefly touched $ 205 on Tuesday after a 18% rally in less than two days. The sharp move has set up the speculation if SOL can expand its acquisitions to the $ 250 mark in the near term. Traders weigh network fundamentals and derivatives activity to determine if there is enough momentum to maintain the rally.
Despite failing the $ 200 psychological threshold, Sol has increased the broadly cryptocurrency market. The latest climbing at $ 199 has pushed its market capitalization to $ 107 billion, BNB is still short for $ 117 billion. To determine if a “flippening” is realistic, it is necessary to check both network foundations and derivatives indicators.
Over the past 30 days, Solana’s transaction count has increased by 48%, which has signed the accelerated onchain activity that supports Sol’s price outlook. In contrast, transactions to the BNB chain were declined by 41% at the same time, according to Nansen data. Solana’s network fees also increased by 43%, showing that increasing use generates visible economic benefits for tokenholders.
Sol futures show moderate appetite at risk from bulls
To understand if traders are optimizing after Sol approaches its highest level in six months, lifelong contracts with futures are key. To balance imbalance demand, exchanges charge a funding rate from either consumers (longs) or sellers (shorts). Levels above 12% usually indicate bullishness.
Currently at 12%, the Sol endless futures annual funding rate is correct in the threshold between neutral and bullish sentiment. Businessmen seemed to doubt, remembering that the last time Sol exchanged above $ 200, on July 22, it lasted less than 24 hours. Investors are also not enthusiastic about volumes in Solana’s Decentralized exchange (Dex), which has fallen.
Dex’s activity in Solana fell for the third consecutive week to $ 20.6 billion, according to Defillama data. Over the past 30 days, Solana’s $ 113.7 billion in Dex volumes has been slightly below the $ 116.2 billion of Ethereum, and this space is not account for Ethereum’s Layer-2 ecosystem, which added another $ 91.7 billion. For Sol holders, these figures do not specifically encourage.
Related: Pantera Bets $ 300m to Crypto Treasury Companies, Says Gains That May Exceeds ETFs
The rex-osprey solana staking Funds exchanged by the exchange (ETF), which was launched in July, accumulated $ 161 million in assets under management. In comparison, the Ethereum ETF recorded a wonderful $ 2.33 billion in net inflows since August 5, despite the fact that Ethereum products have not yet received US security and commission approved for staking features.
While nothing is preventing Sol from reaching $ 250, current onchain and derivatives data do not show a clear catalyst or advancing the entrepreneur’s enthusiasm. However, lack of excessive action can support a more sustainable rally, though it depends on the increase in participation from retail traders and institutional flow, which remains dependent on the SEC approved for a regular Solana ETF.
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.
