After multiple days of consistent price upsurge, Solana has suddenly flipped to the other side of the market. However, investors have shown resilience despite the negative price action witnessed today.
As investors remain optimistic about Solana’s price potential, CME users have committed large amounts of SOL on the exchange, according to data provided by Coinglass.
The data show that open interest in Solana on CME Group has surged by over 6% in just one day as investors remain bullish on the leading altcoin. Notably, the key onchain metric shows that crypto users on CME have committed about $1.91 billion worth of SOL on the exchange.
CME shares big update for Solana
The surge in Solana’s futures activities specific to CME comes as the exchange disclosed plans to roll out options contracts for SOL and Micro SOL futures on its platform.
In a bid to fuel more exposure for the Solana ecosystem, CME also announced the launch of the Trading at Settlement (TAS) mechanism on SOL to allow users to seamlessly and precisely execute Solana trades.
The update has been warmly received by the crypto ecosystem, garnering hype for the leading altcoin and putting Solana in the spotlight.
The Solana-based product launching on CME has attracted more attention for Solana as it offers retail and institutional traders extended investment opportunities, allowing them to hedge their Solana market exposure.
Prior to this update, Solana had continued to attract capital as its fast transaction speeds and expanding ecosystem increasingly lured interest from large businesses, contributing to the surge in its futures activities.
With this move, Solana is set to garner massive traction in its derivatives market, weighing side by side with leading cryptocurrencies like Bitcoin and Ethereum in terms of institutional-grade trading tools. As such, this tends to boost confidence among investors for Solana and fuel higher demand for the asset, especially among institutional investors.
While this move promotes more adoption for Solana, it will provide more options for both its bullish and bearish traders to bet on its price moves.
Although the move positions Solana for more positive price actions, investors are closely watching the asset’s market dynamics, as there are speculations that some traders will opt to take profit once the SOL futures options go live on CME.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team