Amid the problems that continue to plague the network, Solana open interest saw a drop in the last week. That drop coincides with drop in cryptocurrency pricesuggesting that investors may be becoming cautious in waiting for a solution.
Solana Open Interest Drops by $370 Million
Solana has seen its open interest rise steadily since the start of 2024, hitting all-time high after all-time high in the process. Between January and April, Solana open interest went from around $1.22 billion to reach a new all-time high of $2.86 billion on April 1. This translates into an increase of more than 100% in this three-month period.
However, since reaching this new milestone, the cryptocurrency has encountered problems that have presented themselves in the form of a network outage. About a week ago, Solana users noticed that the blockchain stopped processing transactions normally.leading to the interruption of network activities.
Expectations at the time were that the network would be back up and running in a matter of hours, as is usually the case. However, this has proven not to be the case as the network is currently experiencing a week of downtime, one of the longest in its history.
Since the network problems started, the SUN Open interest has been falling as traders adopt a more cautious approach. Currency Currency data shows that the open interest is currently at $2.39 billion as of April 19, $370 million below its all-time high, which represents a 12.9% decline in about a week.
Source: Coinglass
Open interest measures the total number of futures and options contracts in circulation, which means traders have closed their positions during this period.
SOL network ready to recover?
Developers are still working to get the Solana Network back on the right path, but it hasn’t been an easy path. Even now, the network continues to struggle with the blackout, with developers giving a week as an estimated delivery time for the network to get back on track.
Helius Labs CEO Bert Mumtaz revealed in an X (formerly Twitter) publish that the current problems were being caused by an implementation bug. This bug has been the reason why there have been more failed transactions on the network. Mumtaz also clarified that this bug is not the same as a design flaw as it is relatively easier to fix.
The CEO explained that a patch for this implementation bug would still take a while and that developers are aiming for a fix by April 15, a week after publication. However, he added that this date is subject to change if other bugs are discovered in testing.
Following Mumtaz’s post, the Solana community is eagerly waiting for the network to come back online. In the meantime, the price of Solana and other coins in the ecosystem has taken a hit. The bears pushed down the SOL Price as low as $175. However, the expectation is that SUN will return with full force as soon as the network is operational again.
Crypto analyst Ash Crypto said they expect SOL price to eventually rise above $400. If this is correct, then the current situation will be a short-lived obstacle to Solana’s rise.
SOL price drops to $176 amid network issues | Source: SOLUSDT on Tradingview.com
Featured image by ByteTree, chart by Tradingview.com
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