After high-performance blockchain Solana (SOL) saw its total market capitalization surpass the $100 billion mark amid a wider cryptocurrency market rally that helped Bitcoin’s price hit a new $90,000 all-time high, open interest on it started surging.
While Solana has recently endured a slight correction from over $220 to $210.25 at the time of writing, it’s still up more than 44.8% over the last 30 days, and around 263.88% over the last 12 months.
According to data from CoinGlass, open interest (OI) on Solana has been skyrocketing over the last few weeks as it accompanies its price rise, to the point there are now around $4.4 billion of outstanding derivatives contracts focusing on the cryptocurrency.
It’s worth noting that open interest reflects the total number of outstanding derivatives contracts that haven’t yet been settled, meaning open SOL futures or options positions. Growing open interest is a clear signal of increasing market activity and participation.
A growth in open interest is often also seen as a bullish signal, as it shows new money is entering the market to open these outstanding positions.t also adds liquidity to the market, which can be attractive for institutional investors.
Solana price rally pushes OI
The open interest rise comes at a time in which the entire cryptocurrency market has been rallying, to the point its total market capitalization surpassed the $3 trillion mark and neared the total gross domestic product (GDP) of France.
Solana has been one of the top performers during the ongoing rally, rising more than other top cryptocurrencies including BTC, BNB, TRON, and TON. Ethereum’s ether, DOGE, and Cardano’s ADA outperformed Solana over the past week.
Despite Solana’s performance, data shows that over the last 60-day period SOL investors have staked over $2.4 billion worth of SOL as they remain confident in the asset’s future performance.
By staking their funds, they’re entitled to earn form the network’s Proof-of-Stake consensus algorithm as they hep secure it, but lock up their tokens in return for those rewards.
