Originally published on: November 07, 2024
Solana’s native token, SOL, has seen a remarkable surge of 22.5% between Nov. 5 and Nov. 7, reaching an impressive high that hasn’t been seen in seven months. This spike in value comes as part of a broader trend in altcoin growth, which saw a 17% increase as Bitcoin hit a new all-time high on Nov. 7.
The boost in SOL’s demand can be linked to the recent United States presidential election results, where President-elect Donald Trump’s victory and the Republican party’s majority hold in the Senate provide hope for favorable cryptocurrency regulations. This positive sentiment has led to a surge in leveraged positions, with the aggregate open interest for Solana futures hitting a record high.
Solana futures open interest is now at an all-time high, showing a strong adoption of SOL derivatives. This rise in institutional interest hints at potential risks, particularly in terms of whales becoming targets for short-term market volatility. However, derivatives data suggests further upside potential for SOL’s price.
The 8-hour SOL funding rate indicates a moderately bullish sentiment, paving the way for potential upward momentum. While some critics point to memecoins as the driving force behind SOL’s recent price gains, factors like Solana’s total value locked and innovative developments within its ecosystem could push SOL’s price even higher, potentially surpassing $200.
As long as onchain metrics remain robust and derivatives show no signs of excessive fear or greed, Solana’s fast and cost-effective transactions will continue to attract users and bolster its competitive advantage. With no signs of weakness in sight, the path seems clear for SOL to reach even greater heights.
Don’t miss out on important market insights, subscribe to our newsletter for the latest updates on investment opportunities and trading strategies. Get exclusive content delivered straight to your inbox every Monday. Subscribe now to stay ahead of the curve!
