Solana’s native token, SOL, rebounded above $200 following a flash crash to $167, but $1.73 billion in long liquidations raised doubts about a sustained rally to $300. Perpetual futures funding rates remain low, indicating subdued demand for bullish positions despite a lack of bearish conviction among traders.

Solana’s network activity lags amid increased competition, with onchain metrics struggling to recover despite trading 31% below its all-time high of $295. DApps revenue dropped 35% to $35.9 million weekly, weakening SOL’s demand for blockchain computation payments. Competing networks like BNB Chain and Ethereum have seen fee surges, impacting Solana’s market share.

Derivatives metrics show weak bearish sentiment among SOL traders, with the put-to-call volume ratio on Deribit remaining below 90%. Despite recent volatility, ongoing network weakness and competition from Aster, Hyperliquid, and Uniswap pose challenges to Solana’s upside potential. Approval of Solana ETFs may not be enough to drive SOL to $300 in the near term.

Read more at Cointelegraph: SOL Funding Negative Yet Price Has No Traction