Open interest in Solana (SOL) futures fell by approximately 30% in May 2024 as traders reduced their leveraged positions [1].
This decline signals a shift in market sentiment, suggesting that investors are becoming more cautious about holding high-risk contracts during a broader downturn in altcoins. Such a drop in open interest often precedes a period of price volatility or a trend reversal.
According to reports from May 2024, open interest dropped to $1.90 billion [1]. This represents a significant decrease from the $2.75 billion recorded on May 11, 2024 [1]. The sell-off occurred as the price of SOL hovered near $80 [2].
Market analysts said that the reduction in open interest happened across all major cryptocurrency exchanges offering SOL futures [1]. The trend coincided with a general slump across the altcoin market, prompting traders to exit their positions to avoid further losses from leveraged exposure [2].
While recent activity focused on the $80 level, the asset has seen much higher valuations in the past. Solana reached an all-time high of $294 in January 2025 [3]. More recent data indicates the token has traded around $86, which is 71% below that peak [3].
Despite the fluctuation between $80 and $86, the trend of decreasing open interest suggests that the market is flushing out speculative bets. Traders are now monitoring whether the price will maintain its current support or slide further toward lower targets.
“Open interest in SOL futures fell by about 30%, dropping from $2.75 billion to $1.90 billion”
The sharp reduction in open interest indicates a 'de-leveraging' event, where traders close out their positions to limit risk. When combined with a broader altcoin slump, this suggests that the market is moving away from aggressive speculation on Solana. The gap between the current price and the January 2025 peak highlights the significant correction the asset has undergone, leaving traders to determine if the current price floor is sustainable.
