Solana Futures Open Interest Nears All-Time High, Traders Reassess Possibility of Breaking $200

On May 1st, as reported by Cointelegraph, Solana has maintained the $140 support level for a week, which is the first time in nearly two months, suggesting an improvement in market sentiment. The demand for SOL leveraged positions is close to a historical peak, and traders are starting to reevaluate the possibility of SOL breaking through $200. The open interest of SOL futures contracts has reached 40.5 million SOL, approximately $5.75 billion, showing a 5% increase from the previous month. In terms of USD, SOL derivative demand ranks third in the cryptocurrency market, being more than 50% higher than XRP derivatives. Institutional participation is on the rise, but the perpetual contract funding rate is currently negative, indicating a preference for short leverage demand. After Solana's failed attempt to break $156 on April 25th, optimism has waned. The insufficient demand for long leverage may partly be due to Solana's 43% accumulated gains in the past three weeks. Solana's on-chain TVL is currently reported to be $9.5 billion, covering liquidity staking, collateralized borrowing, automated yield platforms, and synthetic derivatives. Among the top DApps, Meteora has a weekly income of $19.1 million, closely followed by Pump.fun ($18.6 million) and Juto ($14.6 million). Since April 14th, Solana's on-chain DEX has had a weekly trading volume of $21.6 billion, surpassing the total of Ethereum's L2 ecosystem. The final approval deadline for the US Solana spot ETF is October 10th, and analysts state that there is a 90% probability of approval. Improvements in on-chain metrics may simultaneously drive SOL to break $200 before the ETF is approved.