Solana Whale's $15M Bet on 20X Leverage Raises Liquidation Risks

Despite declining dollar-denominated open interest in the Solana (SOL) derivative market, traders continue to hold more SOL exposure. According to Alphractal, the OI for Solana has increased by nearly 21.6 percent compared to last year and has risen by 9.38 million to reach 52.87 million SOL.

This indicates that traders are maintaining large amounts of leverage relative to their holdings in coins, which could lead to volatile price movements if there is no significant spot buying pressure.

A recent development has added to these concerns as a whale has placed a large directional bet on Solana using 20x leverage. The whale deposited $8.43 million in USD Coin (USDC) before targeting a 500,000 SOL long position, which has so far filled 199,838 SOL worth roughly $15.2 million.