Solana’s SOL Futures Rack Up $1B in Record Bullish Bets
Futures bets on Solana's SOL have reached a record high of $1.7 billion in the past week, with bullish investors leading the surge. The notional open interest, or the dollar value locked in unsettled futures contracts, has increased by over $700 million since February, with $400 million added since February 8. This surpasses the previous record of $1.4 billion set in late December. Over 63% of positions are long, indicating more than $1 billion in bullish futures bets. However, the current bias towards long positions could potentially lead to a long squeeze, causing investors to sell into a falling market to minimize their losses. Despite this, SOL's open interest of $1.7 billion accounts for less than 5% of its market capitalization of $50.55 billion, suggesting that futures volatility may not significantly impact the spot price. SOL prices have increased by 15% in the past two weeks.
