Investors now fear that even if the broader cryptocurrency market recovers some of its losses, the SOL price will continue its downward trend. However, Solana’s on-chain data and SOL derivatives suggest that a reversal leading to a bull run above $160, last seen five weeks ago, might be on the horizon.
Important Data for Solana
In terms of decentralized applications (DApps) activity, Solana has recently fallen short of being a top competitor, but data over the past seven days shows significant improvement while many of its rivals face declines.
The data indicates that while Ethereum, BNB Chain, and Polygon saw a decrease in active users, Solana’s active users increased by 19% over the past seven days. Similarly, Solana DApps volumes reached $703 million during the same period, a 12% increase from the previous seven days. Meanwhile, market leader Ethereum faced a 37% decline in volumes.
Solana’s decentralized exchange Raydium saw a 39% increase in seven days, accumulating an impressive 1.71 million active addresses. In comparison, BNB Chain’s leading DApp Move Stake had 198,570 active addresses during the same period.
Key Details About Solana
Finally, it’s essential to analyze the futures markets for SOL. Perpetual contracts, also known as inverse swaps, include an embedded rate recalculated every eight hours. Essentially, a negative rate indicates that short positions (sellers) are using higher leverage.
Specifically for SOL, the eight-hour funding rate turned negative between July 5 and July 6, but the indicator is currently near zero, showing balanced demand between long positions (buyers) and short positions. While it’s impossible to determine what could restore investor confidence in SOL and push its price back to $160, data from on-chain and futures markets show no signs of stress.
