In July 2023, Solana experienced a surge in activity on its futures market, reflecting growing investor interest and potential price recovery.
Massive Open Interest Growth in Futures
In July, open interest in Solana (SOL) futures on CME surged by 370%, reaching $400 million. Trading volume jumped from $2.2 billion in June to $8.1 billion. This spike came just three months after the futures product launched and followed the announcement of the first Solana spot ETF with staking.
Increase in On-Chain Activity
On-chain activity for Solana also saw significant growth. Circle minted 11% more USDC on the network last month, increasing the total USDC supply to $12.2 billion. Stablecoin transaction volumes rose 54% to $220 billion, with USDC alone accounting for $186 billion. DEX trading was also strong, averaging over $900 million in daily volume, with USDC peaking at $1.93 billion.
Future of SOL Prices
There is potential for price levels to form as demand for SOL will depend on growing ecosystem interest and sentiment in the derivatives market. As of writing, SOL traded at $165, down more than 6.8% in the last 24 hours. The next key support level is at $158, and if it holds, a price attempt might be forthcoming. However, if SOL drops below this level, selling pressure may increase.
Overall, the increase in open interest and network activity point to a revival of interest in Solana. However, the future price will rely on the interaction of several factors, including overall market sentiment and investor activity.
