Bitcoin has seen a different degree of open interest (OI) activity alongside Ethereum (ETH) and Solana (SOL), according to a recent analysis by Santiment. Although Solana’s price has increased, Bitcoin and Ethereum have witnessed a significant increase in OI. On the other hand, Solana has seen just a considerable adjustment. This reveals different degrees of trader involvement, as some cryptos experienced more speculative activity than others.
🤑 Crypto's big Friday led to Bitcoin and Ethereum seeing enormous new trader leveraged and margin trades opening up on exchanges. However, Solana's own return above $140 is seeing very little. Consider this a bullish sign for SOL, as euphoric traders are looking elsewhere. pic.twitter.com/P07VBvAdOp
— Santiment (@santimentfeed) September 14, 2024
Increased Trading Activity
This increase in Bitcoin’s OI suggests more leveraged positions held by traders, signaling hope for a price increase. The higher OI shows traders seek to profit from Bitcoin’s growing momentum as its price recovers.
Similar trends have been seen with Ethereum, whose open interest, at the time of writing, stands at $5.36 billion. Reflecting a 3.29% rise over the past 24 hours and a 6.87% increase over the past week, Ethereum’s price is $2,418.51. With a trading volume of $12.99 billion over the past day, Ethereum’s price swings clearly to attract traders’ keen interest.
Notably, Ethereum’s OI growth fits its price increases, indicating a surge in speculative trading. Based on the consistent ascent in open interest, traders seem to be positioned for more gains. Like Bitcoin, Ethereum’s price momentum is driven by growing speculative activity as many traders use their positions to profit from the continuous market rise.
Bitcoin Reserve Drop Signals Possible Price Surge: An AnalysisSolana’s Little Change in Open Interest
Though open interest has stayed mostly unchanged, hovering about $1.73 billion, Solana has seen its price rise above $140. At $137.88, this price shows a 2.81% rise over the past 24 hours and an 8.78% rise over the past week. Though this has remained the same OI, Solana’s trading volume is $2.28 billion.
The minor open interest change implies traders are less extensively involved in leveraged or margin trading than with Bitcoin and Ethereum. Despite Solana’s price growth, the lack of speculative trading indicates that its price rise may be driven more by organic market forces than short-term speculation. As a result, Solana may be seen as a more stable option by traders who are wary of taking on leverage in the current market environment.
