Things aren’t going so well Solana (SOL). It was one of the best performances Crypto Coins of the past, however, are currently in a sharp decline. From its March peak of around $210, the digital coin fell 35% before stabilizing at around $145.
The panic surrounding Solana is also affecting the futures market
According to data from Blockchain On the CoinGlass analysis platform we see that panic has also taken hold Open interest futures Market. Open interest, in the context of the futures market, refers to the total number of outstanding derivative contracts, such as futures or options, that have not yet been closed, delivered or exercised. In simple terms, this is the number of active contracts that are still open on the market at a certain point in time.
Open interest in Solana futures has dropped significantly by 21% in just one day. The price drop wiped out $36.55 million in traders’ long positions.
Solana wasn’t the only one having a hard time. Other top 10 cryptocurrencies also saw similar declines. Seen like that XRP And Cardano (ADA) has seen sharp declines of more than 20% in recent days. With these corrections it is clearly visible that altcoins in contrast Bitcoin (BTC) behave significantly more volatile.
Network problems cause unrest
A partial explanation for the decline appears to be, in addition to the overall negative sentiment on the crypto market Network problems. The platform recently suffered from severe blockages. This resulted in a significant number of failed transactions.
In response, Anza developers released a new version of their validator client, version 1.18.11, on Solana’s devnet on April 12. The recently launched DevNet, a private and customizable testing environment for developers, serves as a testing ground for this update without compromising users’ actual assets.
Anza has urged validators to implement and test the update soon in preparation for a possible launch on the Solana mainnet. The effectiveness of this update is critical to reducing network congestion, especially given the recent increase in activity from new memecoins and bot spam.
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