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SOL continues to outperform ETH year-to-date as the cryptocurrency starts 2025 with an 8% jump, with investors continuing to eye a potential Solana ETF.
As of Jan. 2, 2025, Solana (SOL) is trading at $205.64, marking an 8.48% increase over the last 24 hours. This surge follows a brief consolidation phase, reflecting renewed investor confidence and optimism.
SOL hit an intraday high of $205.64 and a low of $187.82, signaling a strong rebound driven by rising demand and favorable market sentiment concerning the proposed Solana exchange-traded fund.
The open interest in SOL futures contracts has climbed to $3.42 billion, fueled by heightened investor engagement.
Perpetual contracts dominate the landscape with $3.4 billion in open interest, while futures contracts account for $15.8 million.
Over the past 24 hours, perpetual contracts grew by 10.67%, and futures contracts experienced a significant 85.59% increase, contributing to an overall 10.87% rise in total open interest. Among crypto exchanges, Binance leads with $1.7 billion in open interest, followed by Bybit at $1.1 billion and OKX at $520.5 million.
On Binance, SOL’s price rose 6.32% over the last 24 hours and recorded a 6.96% gain over the past seven days. Coinbase and Kraken reported similar 24-hour increases of 6.34% and 6.28%, respectively. Binance also leads in trading volume, with 56.1k SOL/ETH pairs traded in the last day, while Coinbase and Kraken follow with 5.2k and 4.6k, respectively.
The sharp increase in SOL’s price and open interest highlights growing optimism among investors.
The 85.59% surge in open interest for SOL futures contracts suggests a rising number of traders are betting on SOL’s price movements. Open interest is often linked with strong market activity and confidence, indicating that the market expects further upside for SOL. The dominance of perpetual contracts reflects traders actively capitalizing on SOL’s price volatility through short-term strategies.
This trend underscores the interplay between increased speculative activity and fundamental interest, both of which are driving SOL’s strong performance.
Awawat, trader and angel investor at APG Capital, tweeted a convincing visual representation of the current market movements SOL.
The recent performance of SOL reflects growing investor confidence, with strong support of around $0.002156 in the SOL/BTC pair and a steady consolidation phase signaling stability against BTC.
The breakout in the SOL/ETH pair points to Solana’s resurgence as an attractive investment amid ETH’s slower momentum, showcasing its competitiveness in the ecosystem.
SOL and ETH differ in their technical designs, with SOL using a unique Proof of History combined with Proof of Stake for faster transactions, while Ethereum operates on Proof of Stake for scalability. SOL’s transaction fees are consistently low, around $0.00025, compared to ETH’s fluctuating gas fees.
ETH has a larger, well-established community and ecosystem, while SOL, though newer, is rapidly growing due to its speed and low costs, attracting developers in DeFi, NFTs, and gaming. These differences influence the user experience and use cases for each blockchain.
Additionally, speculation about a SOL ETF approval by Jul. 31, 2025, has been gaining traction. Platforms like Polymarket have seen rising odds for such approval, with current probabilities around 65%, up from 50% earlier this month.
The combined effects of whale accumulation, increasing adoption, and rising open interest positions in SOL have collectively contributed to the rise. However, potential risks remain, such as network stability issues and regulatory scrutiny, which could impact market confidence.
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