Solana’s native token SOL surged to nearly $200, marking a five-month peak and a 50% rally over the past month. This upward coincided with a $ coincided with a $1.5 billion increase in open interest within just three days, signaling renewed investor confidence in Layer 1 blockchain ecosystems.
Despite the bullish momentum, SOL experienced a slight pullback to approximately $197, suggesting potential profit-taking or short-term market volatility. Market analysts noted a widening divergence in volatility metrics, which jumped from 4% to 14%, indicating traders anticipate heightened price fluctuations ahead. Derivatives data further revealed bullish sentiment as call options gained premium over bearish puts.
While Ethereum’s recent 60% rally dominates immediate market attention, medium-term growth prospects for Layer 1 networks remain strong. Institutional adoption and regulatory developments, including the proposed ‘GENIUS Act’, are expected to drive sustained expansion across the sector.
The crypto market’s near-term direction faces macroeconomic headwinds, with upcoming U.S. economic indicators—particularly jobless claims and CPI data—poised to significantly influence Solana and broader digital asset performance. This highlights the ongoing interplay between traditional financial factors and cryptocurrency valuations.