SOL Negative Funding Rate Highlights Falling SOL Demand
Key takeaways:Solana perpetual futures funding rates flipped negative, signaling excess demand for bearish positions.Rival networks like Base and Hyperliquid pose direct threats to Solana by aggressively capturing DEX market volume. Solanas native token $SOL ($SOL) faced a 15% correction following a rejection at $98 on May 11. A retest of the $83 level on Tuesday was followed by negative futures funding rates, indicating increased demand for short $SOL positions. While declining network activity contributed to the price drop, competition among rival blockchain networks has picked up. $SOL perpetual futures annualized funding rate. Source: Laevitas The $SOL perpetual futures funding rate stood at -3% on Tuesday, down considerably from the +8% on Saturday. During neutral market conditions, this indicator hovers near +9% to account for the cost of capital and exchange risk. Demand for bullish leverage has been largely absent since Saturday, when $SOL price slipped below $90. Solana DEX activity has declined by 56% since January Declining activity on Solanas decentralized exchanges (DEXs) has reduced ecosystem revenue and demand for $SOL. This reduced appetite for decentralized applications (DApps) was not exclusive to Solana, but growing competition poses a major threat, as investors fear that demand for memecoins has faded for good. Solana weekly DEX volumes, DApps revenue,









