Solana's Price Decline from All-Time High
After hitting an all-time high of $291 in January 2025, Solana has experienced a year of steady declines despite occasional relief bounces. The primary trend remains downward, with the current price sitting more than 71% below its peak levels. Major metrics such as open interest and weighted funding rate have also declined significantly, reaching two-year lows.
Open Interest Trends Reflect Bearish Sentiment
Data from Coinglass indicates Solana's open interest peaked at $17.1 billion nine months after the price all-time high, diverging from the usual pattern. In the five months since that peak, open interest has plummeted below $5 billion to $4.89 billion. This decline has closely tracked the price drop, particularly after Solana crashed below $100 for the first time since January 2024, initiating a cascade effect.
Open interest measures the total number of open contracts on an asset and serves as an indicator of market attention. The current low levels suggest investors are placing fewer bets on Solana, consistent with bear market behavior where caution prevails until signs of improvement emerge.
Weighted Funding Rate Hits Multi-Year Lows
The weighted funding rate for Solana followed a similar trajectory, reaching a new all-time high in 2025 before declining to its lowest level in more than a year. This rate determines payments between traders holding perpetual positions: positive rates mean longs pay shorts, while negative rates reverse this.
Currently, the rate fluctuates between positive and negative but has been predominantly negative amid the price decline. This implies short traders are paying to keep positions open, potentially discouraging further shorting and signaling balanced but subdued trader activity.
