Solana Open Interest and Weighted Funding Rates Plunge to 2023 Lows – What’s Next for SOL?
Solana's derivatives market just flashed a signal not seen in years. Open interest and weighted funding rates have cratered to levels last recorded in 2023. That's not a typo—it's a full-scale reset.
The Great Unwind
Traders are bailing. Positions are getting liquidated or closed voluntarily, slashing the total open interest across Solana perpetual futures. It's a classic deleveraging event—the kind that leaves charts looking like a cliff edge.
Funding Flips Negative
Meanwhile, the weighted funding rate has turned deeply negative. Perpetual contracts are trading at a steep discount to the spot price. That's the market's way of paying bears to hold short positions—a stark contrast to the euphoric, fee-positive environment of a bull run.
A Cleansing or a Crisis?
Is this a healthy flush of excess leverage? Or the first crack in Solana's foundation? History suggests such extreme resets often precede major trend reversals, but timing is everything—a lesson every crypto "genius" learns after their third margin call.
The data is clear: the speculative froth is gone. What builds in its place will define Solana's next chapter. Watch the spot market for clues; the derivatives crowd has thrown in the towel for now. Sometimes the smartest trade is recognizing when everyone else has stopped being greedy—and started being scared.
Solana Open Interest And Weighted Funding Rate Reflect The Bear Trend
According to data from the Coinglass website, the Solana open interest had actually peaked long after its price hit its peak, which is usually not the case. The open interest topped out at $17.1 billion, nine months after the price hit its all-time high. However, in the five months following the open interest hitting a new high, things have changed drastically.
The website shows that Solana’s open interest has now crashed below $5 billion, sitting at $4.89 billion at the time of writing. Interestingly, the open interest has followed closely with the price decline, and the crash below $100 for the first time since January 2024 has triggered a cascade.
Since open interest measures the open contracts on an asset, it is often a signal of how much attention a coin is getting. With the open interest sitting so low, it suggests that investors are not taking as many bets on Solana as they used to. This is normal in bear markets, when investors are still fearful and wait to see the market improve before jumping back in again.
In the same vein, the weighted funding rate has taken a nosedive. Similar to the open interest, the funding rate had hit a new all-time high back in 2025 before moving downward again, and has now hit its lowest level in more than one year.
The funding rate is essentially what traders pay to hold perpetual positions, with long traders paying short traders when the rates are positive and short traders paying long traders when the rates are negative. Simply put, the funding rate can encourage traders to open positions in different directions in favor of not paying fees.
Currently, the Solana weighted funding rate is fluctuating between positive and negative. However, it has been mostly negative with the decline in price. This means that currently, short traders are paying to keep their positions open.
