Will Solana Reach $300 by December? Traders Remain Hopeful (Or Not?)

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Key takeaways:

  • Solana’s SOL token has rallied above $200 again, but weak on-chain activity and rising competition make a sustained surge unlikely.

  • While traders are not exactly bearish, stagnant network growth and shifting market share continue to cap SOL’s potential.

Ah, Solana’s native token SOL! It’s once again soaring above $200, having clawed its way back from Friday’s little flash crash that brought it down to a humble $167. Despite this recovery, the memory of a hefty $1.73 billion in long liquidations still lingers in the Solana derivatives market. Naturally, this has left traders wondering whether the bullish momentum has met its untimely demise. Could $300 be a realistic target in this cycle? The suspense is palpable, isn’t it? 🧐

SOL Price Chart

The demand for leveraged bullish positions is, let’s say, underwhelming. The perpetual futures funding rate is hovering at a lackluster 0%. Normally, this rate would be anywhere between 6% and 12%, signaling that buyers are eagerly paying to maintain their positions. But no, even before the crash, SOL’s funding rate was a modest 4%. Not exactly the mark of an all-hands-on-deck rally, is it? 🙄

When the funding rate turns negative (as it sometimes does when the shorts come out to play), it suggests the bears have temporarily taken over. But fear not! These negative funding periods tend not to last long. Still, the enduring strain in Solana’s derivatives market is a clear sign of the broader damage inflicted by last Friday’s liquidation madness. 😬

Weak Solana Network Activity Amid Rising Competition

Despite SOL managing to stay above $200, the on-chain activity tells a different, much quieter story. Network activity has failed to regain its former glory, especially since the memecoin frenzy of early 2025, and Solana has lost its place as a leader in decentralized exchanges (DEXs) as new competitors rise to the occasion.

Solana Network Activity

Decentralized apps (DApps) on Solana only brought in a modest $35.9 million in weekly revenue, with network fees dropping 35% from the previous month, now totalling $6.5 million. This slowdown weakens the demand for SOL as the token of choice for blockchain transactions. The cherry on top? Lower activity means fewer staking rewards for SOL holders, placing additional downward pressure on the token. 😞

SOL Staking Activity

Meanwhile, competitors like BNB Chain, Ethereum, and Hyperliquid are having quite the moment. BNB Chain, for example, has seen its weekly fees balloon to a hearty $59.1 million, largely thanks to a certain meme launchpad platform that’s made quite the splash. Even Ethereum’s layer-2 networks are seeing a surge, with fees jumping by over 40%. Meanwhile, Hyperliquid is riding high after Friday’s market mayhem. Talk about competition! 🤷‍♀️

If we take a peek at the options market, it’s clear that traders are far from bearish. The SOL put-to-call volume ratio on Deribit has stayed below 90% for the past week, indicating weak demand for bearish positions. In fact, when traders expect a downturn, this ratio usually spikes above 180%. It’s safe to say, at least for now, that traders aren’t exactly biting on the ‘bear’ side. 😏

SOL Options Market

Of course, these derivatives metrics may have been skewed by the chaotic volatility of last Friday’s crash, but the ongoing weakness in Solana’s on-chain activity, paired with the rise of competing networks, spells trouble. Whether it’s Aster, Hyperliquid, or Uniswap, these rivals are taking bites out of Solana’s upside potential.

Even if traders aren’t outright bearish, it seems unlikely that a single event-such as the approval of Solana-based exchange-traded funds in the U.S.-could suddenly propel the token to $300 in the near future. But hey, stranger things have happened, right? Or perhaps not. 😉

This article is purely for informational purposes and should not be construed as legal or investment advice. The opinions expressed are those of the author alone and do not necessarily reflect the views of CryptoMoon. But let’s be real… it’s not looking great, is it? 😜

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2025-10-14 23:28