Solana Whale's $8.43M Bet Boosts Leveraged Long Exposure
Solana's derivatives market is showing signs of disconnect from its falling prices. The USD-denominated Open Interest (OI) has declined by around $3.66 billion, a decrease of about 47.5% compared to last year.
Despite the lower dollar valuation, the OI for Solana has increased by nearly 21.6 percent when compared to last year and has risen by 9.38 million to reach 52.87 million SOL. This indicates that traders hold more SOL exposure despite the lower dollar valuation.
A significant whale is now adding to this leveraged risk through a large directional bet, depositing $8.43 million in USD Coin [USDC] before targeting a 500,000 SOL long position using 20x leverage.
The potential for liquidation risks has increased due to the high leverage being used by traders. The whale's TWAP order has filled 199,838 SOL, worth roughly $15.2 million, near a $75.985 average entry, leaving the filled position slightly underwater by roughly $8,888.
Solana is considering two supply changes that would reduce SOL circulation through different mechanisms. If implemented, these changes could strengthen leveraged bullish positions if spot demand remains firm.