Solana’s native token, SOL, has gained 10% in just five days, reaching a three-week high, despite underperforming against its peers. This uptick is attributed to easing geopolitical tensions following a US-Iran ceasefire extension, which has also led to a decline in crude oil prices. Notably, demand for SOL futures has surged, with open interest rising by 20% to $4.2 billion, indicating increased institutional participation and speculation that SOL could hit $100.

The broader cryptocurrency market has seen a decline in decentralized application (DApp) revenues, with Solana’s network revenue falling to nearly $16 million per week. However, the recent resurgence in memecoin activity could act as a catalyst for SOL, as past rallies have shown a strong correlation between memecoin demand and SOL price performance.

Market professionals should watch for potential shifts in leveraged positions within perpetual futures markets, as any imbalance could signal a significant price movement for SOL, particularly if shorts begin to cover their positions.

Source: cointelegraph.com