What happened?
Solana dropped about 20% in the past week, making it one of the weakest performers among top tokens. At the same time futures open interest hit a record $17.1B and perpetual funding flipped positive, while whales and institutional treasuries scooped up large amounts of SOL. On-chain metrics are mixed: TVL and transactions dipped, but DEX volumes, tokenized stock share and daily active addresses remain strong.
Who does this affect?
Derivatives traders face higher risk and potential volatility because record open interest and positive funding can amplify moves and liquidations. Institutional players and whales are clearly involved, with big treasuries and a booming stablecoin market bringing more capital to Solana. Retail users and DeFi apps feel pressure from falling TVL and shrinking memecoin activity, though many still benefit from deep DEX liquidity and active user numbers.
Why does this matter?
High open interest plus positive funding means a break of key support around $198–$200 could trigger sharp downside toward $185–$174, creating spillover risk across derivatives desks. Conversely, continued whale accumulation and institutional inflows could power a strong rebound to $255 or even $330–$350 if bulls reclaim $215, so big directional moves are possible. That mix of heavy leverage, growing institutional demand, and persistent on-chain activity makes Solana a market-moving asset whose next move could shift liquidity and sentiment across crypto markets.