Key points to remember:
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Solana maintains its market dominance in terms of DEX volume and TVL despite SOL’s underperformance compared to its peers.
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Easing selling pressure from volatile geopolitics and a resurgence in memecoin activity could catalyze a rise in SOL price to $100.
Solana’s native token, SOL (GROUND) gained 10% in five days, reaching its highest level in three weeks on Friday. This price development follows widespread enthusiasm after the United States and Iran announced a ceasefire extension, which led to an 8% drop in Brent crude oil prices. Demand for SOL futures surged as open interest jumped 20% since Sunday, leading traders to wonder if the SOL price is fixed at $100.
Aggregate open interest in SOL futures reached $4.2 billion on Friday, up from $3.5 billion on Sunday. Although an increased appetite for leveraged positions indicates institutional investor participation, long (long) and short (short) positions remain in line at all times. However, any potential imbalance in demand for leveraged positions should be visible within the market. perpetual futures markets.
Under neutral conditions, the annualized funding rate should be between 5% and 10% to offset the cost of capital.
Data showing a 3% rate signals low confidence from bulls, although this is still far from the extreme fear levels seen on April 7, when SOL prices plunged below $80. A negative funding rate indicates that shorts are paying to keep positions open, which is quite unusual in cryptocurrency markets.
Despite recent gains, SOL has underperformed the broader cryptocurrency market by 13% in 2026. A reduced appetite for decentralized applications (DApps) likely played a role, but the Solana network remains a strong contender due to its vice-leadership position in total value locked and its dominance in decentralized exchange (DEX) volumes.
The Solana network’s DApp revenue has been trending downward over the past few months, currently totaling almost $16 million per week. However, this trajectory is not exclusive to Solana; DApps on the Ethereum network generated $10 million in revenue over the past week, while the BNB chain stood at $4 million. Decreasing interest in DEX activity remains the primary driver of this decline in revenue across the industry.
Memecoin rally and short covering could send SOL to $100
Several memecoins surged 40% or more between Wednesday and Friday, which likely contributed to the increased demand for SOL futures.
During the previous memecoin rally in early 2025, Solana established itself as a leader in terms of users and activity, especially after the launch of the official Trump (ASSET) memecoin. Therefore, any signs of increasing demand for memecoins are generally considered a positive indicator for SOL price.
Related: Bitcoin Rises, Oil Falls After Iran Says Strait of Hormuz Open
Solana has proven to be a strong contender for the next wave of DApp users, whether focused on AI agents or speculative trading. THE robustness of its validators and the integrated user experience provided by Web3 wallets make compelling arguments for sustained SOL price increases.
Ultimately, low demand for bullish leverage on futures contracts does not prevent SOL from regaining momentum. Reducing pressure from the war in Iran could serve as a catalyst for SOL shorts to cover their positions, providing the spark needed for a potential rise toward $100.
This article is produced in accordance with Cointelegraph’s editorial policy and is intended for informational purposes only. It does not constitute investment advice or recommendation. All investments and transactions involve risks; Readers are encouraged to conduct independent research before making a decision. Cointelegraph makes no warranty as to the accuracy or completeness of the information presented, including any forward-looking statements, and will not be liable for any loss or damage arising from reliance on such content.
