30s Summary

Between November 5 and 7, Solana’s cryptocurrency SOL rose by 22.5% to reach a seven-month peak, due in part to positive political developments in the U.S. Despite possible risks from futures trading, Solana futures saw a record high in interest making experts predict continued growth. The SOL price increase is attributed to a rise in memecoins and other changes within Solana’s ecosystem. Despite critics expecting a “pump and dump” scheme, other factors contributing to the surge include a 22% increase in Solana’s total value locked (TVL) as reported by DefiLlama.

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Between Nov. 5 and Nov. 7, the value of Solana’s native cryptocurrency SOL soared by 22.5%, reaching a seven-month high. This impressive growth reflects a wider boom across the altcoin market, which witnessed a 17% increase as Bitcoin hit a record high on Nov. 7.

The market’s upward momentum can be partly credited to Donald Trump’s victory in the U.S. presidential election, as well as the Republican party’s success in the Senate. These political changes hint at more innovation-friendly regulations in the world of cryptocurrency.

As SOL’s popularity grew, so did leveraged positions, with the total interest in Solana futures reaching an all-time high on Nov. 7. Even with the risk of forced selloffs if SOL’s price takes a tumble, evidence suggests further growth could be on the cards.

The amount of SOL futures open interest shot up to 21.1 million SOL on Nov. 7, an 11% weekly increase and a new record. This customer engagement showcases the rising interest in SOL derivatives, but also flags potential future risks.

Large futures positions can be tracked, which could make whales (or big-time traders) targets for those hoping to cash in on short-term market fluctuations. However, the funding rate gives an idea of which side is chasing more leverage, as long and short positions are always balanced.

At the moment, SOL’s 8-hour funding rate is around 0.017%, about 1.5% per month, which implies a fairly neutral sentiment, leaning towards growth. Generally, the cost of leverage for long positions climbs to 2.1% or higher during peak market enthusiasm. The current rate suggests moderate optimism, and could help propel the currency’s upward trajectory.

Analysts argue SOL’s price surge was mainly due to a rise in memecoins. Platforms like the Pump.fun token launch and the Raydium decentralized exchange got a huge boost from the memecoin mania. But other changes within the Solana ecosystem could potentially push SOL’s price beyond $200.

Skeptics, like ‘CatfishFishy’, imply that “pump and dump” schemes, orchestrated by a small group of wealthy investors, could be at play. The criticisms also note worries about potential regulatory scrutiny, as part of the audience on platforms like TikTok is underage.

The notion that memecoins are the main push behind SOL’s surge to $194 ignores other important factors. For example, Solana’s total value locked (TVL) reached $6.64 billion on Nov. 7, a 22% increase from the previous month, per DefiLlama data. This impressive gain was noted across several sectors, including liquid staking, perpetual futures, leverage, lending, and more.

If SOL’s onchain metrics stay solid and derivatives don’t display excessive fear or greed, Solana’s speedy and relatively cheap transactions could continue to be a huge drawcard for users, as Bitcoin’s hits new highs. There are currently no signs of trouble in the waters, pointing to a bright future for SOL’s value.