In the midst of ongoing problems for the network, the open interest in Solana decreased noticeably over the past week. This decrease mirrors the drop in the cryptocurrency’s value, implying that some investors might be losing patience and selling off their holdings due to uncertainty about a forthcoming resolution.
Solana Open Interest Drops By $370 Million
Starting in early 2024, Solana’s open interest continuously grew, reaching a new record high following yet another record high. The value of open interest for Solana increased from approximately $1.22 billion in January to an astounding $2.86 billion on April 1 – representing a significant leap of over 100% within just three months.
After reaching a new achievement, the cryptocurrency has experienced problems manifesting as a network stoppage. Approximately a week ago, Solana network users became aware that their transactions were no longer being processed normally, resulting in a halt in network operations.
Initially, it was believed that the network would recover within a few hours, based on past experiences. Nevertheless, this prediction has been disproven as the network has experienced an unexpected outage lasting nearly a week – one of its longest recorded interruptions.
Over the past week, the open interest for SOL on the cryptocurrency network has dropped by nearly 13%, reaching a current level of $2.39 billion according to Coinglass data. This decrease comes as traders adopt a more cautious stance in response to ongoing network issues, with the open interest having been $2.76 billion at its peak.
Open interest represents the current count of unfilled futures and options contracts, indicating that some traders have chosen not to close their positions yet.
SOL Network Ready To Bounce Back?
The Solana network is currently undergoing repairs by developers, but progress has been challenging. At this point, the network is still grappling with outages and the team estimates that it could take up to a week before normal operations resume.
In a recent update on X (previously Twitter), Helius Labs CEO Bert Mumtaz disclosed that the recurring problems stemmed from a implementation glitch. This glitch is responsible for the higher number of unsuccessful transactions on the network. Mumtaz further explained that this issue isn’t indicative of a design flaw, as it can be rectified with relative ease.
The CEO shared that it would take some time for the team to release a solution for the implementation issue they found. Their goal is to have it resolved by April 15, which is just over a week away. However, he cautioned that this timeline could shift if additional bugs surface during testing.
After Mumtaz’s update, the Solana community anxiously awaits the network’s restoration for fill operations. In the interim, the value of Solana and related coins within the ecosystem has declined. The price of Solana dropped as low as $175 due to selling pressure from bears. Nonetheless, optimism persists that the price will rebound significantly once the network is functioning normally again.
According to crypto expert Ash Crypto’s prediction, the value of Solana (SOL) is anticipated to surpass $400 at some point. If this forecast holds true, then the current hurdle will merely be a brief setback in Solana’s upward trend.
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2024-04-09 21:04