The open futures for Solana have reached 1.7 billion USD, with over 63% being long positions

In the past two weeks, SOL tokens have risen by 15%, becoming one of the best-performing major tokens. Data shows that leveraged long bets account for most of SOL's open futures, but this could trigger a long-term pullback. Over the past week, futures bets tracking Solana's SOL have risen to a record $1.7 billion, with bulls leading.

 

Since early February, nominal open interest (or dollar value locked in open futures) has increased from $700 million to $1.7 billion, an increase of $400 million since February 8th. This surpasses the record of $1.4 billion set at the end of December last year when this ecosystem was in frenzy led by Meme coins. Data from tracking service Coinalyze shows that over 63% of positions are bullish or betting on price increases, meaning that bullish futures bets exceed $1 billion. The increase in open interest represents new or additional funds in the market during price rises. However, leverage is a double-edged sword; it amplifies profits and losses and is considered to inject volatility into markets. High use of leverage often leads to rapid fluctuations in any token's price as rising or falling prices may trigger liquidation events.

 

The current bias towards long positions suggests potential for a longer-term pullback - investors holding these positions might feel compelled to sell off during market downturns to minimize losses thus triggering chain reactions of liquidations similar situations occurred at the end of last year when open interest reached $13.7 billion followed by prices dropping from $120 down to $83 –a fall by 30%. Despite this however SOL’s outstanding interests worth$1 .7billion still represent less than 5%of its total market cap which stands at$50 .55billion suggesting future market volatility may not significantly impact spot prices over time data indicates that over past fortnight sol’s price has risen by 15% outperforming other major tokens.