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Solana Open Interest and Price Drops, But Can it Claim Top 3 Market Cap as Predicted by Chris Burniske?

Last Updated April 15, 2024 9:53 AM
Teuta Franjkovic
Last Updated April 15, 2024 9:53 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Solana dips with market but recovers quickly
  • Traders see opportunity.
  • Top 10 cryptos recovered after a dip, while Solana faces network congestion impacting new projects.

In the past 48 hours, both the open interest (OI) and price of Solana  have seen a decline, reflecting a wider downturn in the cryptocurrency market.

Despite this, traders remain optimistic, considering the situation a “good opportunity.”

Solana Open Interest and Price Dip Significantly

On April 14, the OI in Solana‘s futures contracts was reported  at $1.62 billion. This marked a 21% decrease from the previous day. Open interest represents the total value of all outstanding or unsettled futures contracts for Solana across different exchanges.

According to CoinMarketCap , the price of Solana stands at $153.29 at the time of writing (April 15).

Solana price
Credit: Coinglass

A sharp decrease in Solana’s price  has resulted in the liquidation of $36.55 million worth of traders’ long positions. This downturn comes at an unfortunate time for those who were expecting a price increase in anticipation of the upcoming Bitcoin halving on April 20.

Venture Capitalist Draws Parallels 

Chris Burniske, a venture capitalist and former crypto analyst at ARK Invest, now a partner at Placeholder, has pointed out similarities between the trajectory of Celestia (TIA) and Solana (SOL) in its early days.

Reflecting on Solana’s performance in 2020, when it was relatively new, Burniske suggests supporters of Celestia who are disheartened by the recent significant correction in TIA’s value might find solace in how Solana’s situation unfolded. Burniske’s comparison highlights the potential growth trajectory for emerging blockchain projects, even after facing initial setbacks.

He commented :

“Seeing lots of TIA complainers after the token went ~10x in the public market in ~4 months. Most of these complainers have no clue SOL also went ~10x in 2020, then sold off 80%, then went 100x+ in 2021. If you can’t handle downside volatility, you don’t deserve the upside.”

https://twitter.com/cburniske/status/1778929933630443683

Top 10 Cryptos Witness Broad Declines but Quickly Recovered

The top 10 cryptocurrencies have experienced notable declines but recovering as well in the last 24 hours. XRP rose by 4.33%, while Dogecoin  followed closely with a decrease of 10.86%, and is currently up by 4.27%. Cardano  also saw a notable drop but went up by 3.29%.

Despite the marketwide downturn, the sentiment among traders remains somewhat optimistic. Prominent trader GCR Classic recently ended a year-long silence on Twitter to advise  his 273,500 followers that the current market conditions offer a “good opportunity to scale into high conviction tokens.”

It remains uncertain how long this downturn will persist, but traders continue to maintain a positive outlook for the overall altcoin market.

Mixed Sentiments and Network Issues Affect Crypto Market

In a recent post on X , crypto entrepreneur Kyle Chasse predicted altcoins might surge by 20-30% by Monday, suggesting a potential rebound. However, on-chain analysis firm Glassnode  presents a more cautious perspective. In their April 12 update, they noted that while Bitcoin has seen worse drawdowns during previous euphoria phases—often exceeding 25%—the current market has only experienced drawdowns of around 10% since hitting all-time highs on March 5.

In related news, the Solana blockchain has been grappling with significant network issues. On April 9, Cointelegraph reported that intermittent congestion forced some crypto projects to delay their launches.

Solana developers are reportedly working towards resolving these issues by April 15, as the blockchain has faced increasing congestion and transaction errors over recent weeks, impacting new projects planning token launches.

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