Solana funding rate flips negative as SOL falls 15%
Solana perpetual futures funding rate dropped to -3% after SOL fell about 15% following a $98 rejection; weekly DEX volume on Solana is down about 56% since January.
On May 11 SOL was rejected at $98 and fell roughly 15%, briefly retesting the $83 level. The annualized funding rate for Solana perpetual futures moved from about +8% on Saturday to -3% on Tuesday, a swing that reflects higher demand for short positions in those markets. A negative funding rate means traders holding long positions pay traders holding short positions.
Weekly decentralized exchange volume on Solana has fallen to about $11 billion from an average near $25 billion in January, according to network activity data. Weekly decentralized application revenue on Solana has stabilized near $20 million, down from roughly $35 million earlier in the year. Over the past 30 days the top DApp revenue producers on Solana were Pump, Axiom Pro, Phantom and Jupiter, which together accounted for about 65% of on-chain DApp revenue on the network.
Two rival networks have increased their share of DEX activity. Base, an Ethereum layer-2 with integration into Coinbase services, has attracted DEX users through that connectivity. Hyperliquid focuses on perpetual contracts implemented at the consensus layer and emphasizes high throughput and integrated trading features. Both networks have posted rising DEX volume that has coincided with Solana’s decline in weekly activity.
Total value locked on Solana is about $5.9 billion, placing it behind Ethereum, which holds roughly $43.2 billion. BNB Chain follows Solana with about $5.5 billion in TVL and Base holds about $4.5 billion. On Solana, DEX platforms and staking apps such as Jupiter, Kamino, Sanctum and Raydium account for a substantial share of locked value.
An on-chain analysis posted to a public forum found that roughly 1,600 addresses were responsible for nearly 63% of trading volume on PreStocks, a synthetic asset platform on Solana. The identified addresses showed high execution frequency, balanced trades and small net losses over the observed period.
Current price and activity data do not show a revisit to the $78 level recorded in early April. Market participants and traders are watching DEX volumes and DApp revenue for signs of renewed trading activity that could affect SOL demand.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
