Solana’s Open Interest Reaches New Peak: Could SOL Hit the $200 Mark Soon?

Between November 5 and November 7, Solana’s native token, SOL, spiked by 22.5%, reaching its highest level in seven months. This rally coincided with an impressive 17% surge in altcoins across the market, fueled in part by Bitcoin hitting a new all-time high on November 7.

A large factor behind this surge can be traced to the recent U.S. presidential election results, where President-elect Donald Trump’s win and the Republican majority in the Senate created anticipation around pro-innovation regulatory policies that could positively impact the crypto sector.

Demand for SOL grew alongside a surge in leveraged positions, as open interest for Solana futures reached an unprecedented peak on November 7. Though this increase in leverage presents some risk of forced liquidations in the event of a price drop, derivatives data suggests there may still be room for further gains.

On November 7, SOL futures open interest climbed to 21.1 million SOL—a notable 11% increase from the previous week—setting a new nominal high at $4 billion. This sharp rise reflects a growing interest in SOL derivatives, potentially signaling institutional interest but also bringing some risks of volatility.

Large futures positions are closely watched, as they can become targets for market players seeking to exploit short-term price swings. In derivative markets, however, there’s always a balance between long and short positions, and the funding rate provides insight into which side is taking on more leverage.

At present, the 8-hour funding rate for SOL is at 0.017%, or around 1.5% on a monthly basis, which points to a balanced but optimistic outlook. In times of high market enthusiasm, this rate can go as high as 2.1%, so the current level suggests moderate optimism that could continue to support price growth.

Strong onchain metrics support continued price growth for SOL

Some analysts believe SOL’s recent gains have been amplified by the hype around memecoins. Platforms like Pump.fun and Raydium, a decentralized exchange (DEX) within Solana’s ecosystem, have benefited from this trend. However, broader developments within Solana could drive SOL even higher, potentially breaking the $200 mark.

However, not everyone is optimistic. Critics, including a user named ‘CatfishFishy,’ warn about potential “pump and dump” tactics allegedly led by a few wealthy insiders. These groups, it’s claimed, may leverage influencers and endorsements to drive up prices. The critic also raised concerns about the involvement of a young TikTok audience, which could attract regulatory attention.

While some speculate that memecoin hype is driving SOL’s rise, other fundamental factors support this growth, such as Solana’s total value locked (TVL), which hit $6.64 billion on November 7—a 22% increase from the previous month according to DefiLlama data. Much of this gain comes from areas like liquid staking, perpetual futures, and lending, indicating that Solana’s success isn’t solely dependent on the memecoin sector.

As long as Solana’s onchain data remains strong and derivatives markets avoid extremes in sentiment, the network’s fast and affordable transaction capabilities will continue to attract a sizable user base, especially as Bitcoin’s surge brings more attention to crypto.

Overall, SOL’s fundamentals and strong demand indicate there may still be room for further growth, setting the stage for even higher price targets.

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