After hitting a record high of $291 in January 2025, Solana began a year of steady decline. While there has been some relief along the way, the main direction has been down. At the time of writing, Solana’s price is now more than 71% below its all-time high. Other key metrics also saw significant declines during this period, with the Open Interest and Weighted Funding Rate falling to two-year lows.
Annual open interest and weighted funding ratio reflect a bearish trend
According to the Coinglass website, Solana open interest actually peaked after its price peaked, which isn’t usually the case. Open interest was $17.1 billion, nine months after the price peaked. However, within five months of reaching open interest, things had changed dramatically.
The website shows that Solana’s open interest has now dropped from $5 billion to $4.89 billion at the time of writing. Interestingly, the open interest was followed by a drop in price, and the fall below 100 USD for the first time since January 2024 triggered a cascade.
Since open interest measures open contracts in assets, it is often a signal of how much interest a coin is receiving. Given that open interest is so low, this suggests that investors aren’t betting as much on Solana as they used to be. This is normal in bear markets when investors are still scared and waiting to see the market improve before going back into the market.
In the same respect, the weighted rate of financing was ignored. Like open interest, the funding rate peaked in 2025 before declining again and is now at its lowest level in more than a year.
The funding rate is essentially what traders pay to hold long positions, and long traders pay short traders when prices are positive and short traders pay long traders when prices are negative. Simply put, the funding rate can encourage traders to open positions in multiple directions for the benefit of not paying fees.
Currently, Solana’s financing rate fluctuates between positive and negative. However, it was mostly negative due to the price reduction. This means that short traders are currently paying to keep their positions open.
Featured image from Dall.E, chart from TradingView.com
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