Expanding ecosystem and $1.86B futures open interest back Solana’s $250 target

The Solana (SOL), price is facing resistance at its all-time high, but solid fundamentals as well as the impressive growth of its non-fungible token ecosystem (NFT) and decentralized finance (DeFi) are expected to propel the altcoin past $250 before the year’s end.

1-day SOL/USDT chart. TradingView

Solana’s remarkable 490% increase in August is likely due to institutional investor interest. SOL, for example, is the fourth-largest Bitwise 10 Crypto Index Fund ($BITW), which is an $1.3 billion over-the counter tradable market instrument.

This event does not necessarily mean that traders are positive, as futures contracts require both buyers (long) or sellers (short). However, there are more players who can participate due to the growing interest.

DeFi is growing in popularity

Two of Solana’s most important decentralized finance projects include decentralized exchanges that have built-in yield generation programs. They each hold close to $2 billion in total locked value.

Saber (SBR), an automated market maker protocol (AMM), trades between synthetic assets and stable pairs, and yields the liquidity providers. Raydium, meanwhile, offers a decentralized exchange and yield farming as well as liquidity pools.

According to CoinShares, the $12 million weekly inflow reported in mid-October by CoinShares is evidence of institutional investors’ interest in Solana. The United States-registered branch of FTX exchange also announced support for Solana, allowing users to trade, deposit, and withdraw NFTs that comply with the Metaplex token standard.

Record-breaking open interest in SOL futures has been achieved

This positive newsflow is reflected in Solana’s derivatives market, as shown by the aggregate futures interest data below.

Futures for Solana aggregate open interest. Source: Bybt.com

On Oct. 25, the indicator reached a record high of $1.86 billion, which is a 123% rise in just 30 days. For perspective, Cardano (ADA), and Polkadot(DOT) each have a $900million futures open interest.

Traders need to recognize that futures contracts are not always positive. They require both a buyer and seller. This increasing interest however allows for more players to take part.

DeFi protocols’ $13.5 billion total value locked (TVL), is another positive. This was despite the significant hit to the sector from the 17-hour network downtime between Sept. 14th and Sept. 15.

Total value locked (TVL), Solana, USD. Source: Defillama.com

Grape launched its IDO on Raydium, a Solana-based decentralized exchange (DEX) Raydium. This activity exceeded the processing capacity, with a transaction load exceeding 400,000 per second. Validators had to coordinate a hard fork in order to ignore the spam requests.

SOL seems to be closer than ever at $250

Data from Cointelegraph Markets Pro showed that VORTECS(tm), a data service of Cointelegraph Markets Pro, began to identify a bullish outlook on SOL on October 20, almost 24 hours before the 15% pump that resulted in $210.

Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is based on a combination data points, including trading volume, market sentiment and recent price movements, and tweet activity.

Score VORTECS(tm), vs. SOL Price (white). Source: Cointelegraph Markets Pro

Data shows that the number of tweets by unique accounts about Solana is 32% more than the average over the past 30 days. The VORTECS(tm score) that identified bullish conditions for SOL Oct. 20 includes tweet volume.

Solana’s ecosystem will continue to grow, and the network will remain a viable solution for DeFi or NFT applications that need fast and cheap transactions. Onchain and derivatives indicators indicate that $250 SOL is possible by year’s end.

Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.

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Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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