Solana Price will not pop out quickly. The reason is as follows

Solana’s indigenous token, SOL (SOL) fell to $ 131.90 on February 25 and the lowest point in five months. Unexpected corrections sparked more than $ 129 million in Leverage’s long Solar future status. Since February 22, SOL has been simply recovered to $ 140, but SOL has decreased 17%, while the larger Altcoin market has decreased by 10%.

Some factors, including reduced onChain activities, derivatives indicators and equal inflation suggest that SOL can continue to be low in the short term. Distributed exchange (DEX) of Solana Network has decreased 30% over the last seven days, reaching the lowest level since October 2024.

METEORA was the worst achievement, down 48% from last week, and Raydium led to a 28% decrease. Pump.fun Memecoin launchpad has reduced onChain volume by 35%. In contrast, according to Defillama data, Ether Lee’s DEX volume increased 40% a week.

Pendles have increased onChain volume by 76% over the same period. The recent Hyper Liquidchain, which was recently released, focused on permanent future transactions and recorded an increase of 25%. Similarly, the volume of SUI, a layer -1 block chain focused on scalability, rose 15%. Meanwhile, BNB chain’s DEX activity was 40% less than last week.

SOL correction was not driven by Memecoin Decline.

Some analysts have led the negative performance of SOL to the Burst of Memecoin Launch Bubble. However, the decrease in activity on Solana’s distributed applications (DApps) also affected areas such as liquid staying, yield strategy, gambling, NFT loan and Web3 infrastructure. A notable example includes Jito, which has a 49% decrease in its own active address, while Fragmetic has decreased by 30% and storage decreased by 28%.

According to the JPOOL Liquid Stay King Calculator, the expansion of the Solana network depends on the economic incentive of the validation test. In addition to server costs, there are approximately one “voting costs” per day, which greatly affects profitability even when considering maximum extractable values ​​(MEV).

According to Stackingrewards, Sol Native Stacking currently offers 9.5%yield. But if you adjust to the equal inflation, your net profit is much lower. More than 1.61 million SOL tokens will be unlocked between February and May 2024, with an annual inflation rate of 10%. This effectively produces negative profits for SOL staying during this period.

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Derivatives require a slump with the chance of spot solana ETF.

According to the derivative market data, the demand for long positions (purchasing) in SOL FUTURES has fallen to the lowest level over 12 months.

Monthly futures contracts are generally traded from 5% to 10% premium compared to the spot market to explain the longer agreement period. However, on February 24, the Solar Future is backward, indicating that the demand for short positions has increased significantly.

According to CoingLass data, the total open interest on SOL FUTURES is decreased by 8.5%from February 24, February 24, February 24, 28.9 million SOL to 2.36 million Sol to 2.36 million soles in 2.5 million soles in 2.5 million soles in February 24th. I did it. This change can reflect the merchant’s imminent approval, especially in the United States, considering the reduction of merchants’ expectations for the imminent approval of Solana Exchange-Traded Fund (ETF), especially the negative impacts of bybit Exchange Hack and the OKX agreement with the US Justice Department. .

SOL will take longer to restore strong exercise by reducing the decrease in Onchain activity, inflation pressure, low demand for long positions and the possibility of approval of Solana ETF.

This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.