Solana News Today: Solana's $1,000 Target Looms as Open Interest Hits $13B High

Solana’s price has regained over 36% of its value since dropping to $155 on Aug. 3, reaching an intraday high of $210. Technical indicators suggest a potential upward trajectory for the asset. A bullish megaphone pattern, also known as a broadening wedge, has emerged on the weekly chart, indicating that a breakout above $330 could lead to a surge toward a target of $1,057. This projection is based on historical analysis of similar patterns and Fibonacci retracement levels. Additionally, the relative strength index (RSI) has increased from 49 to 61 since early August, signaling growing bullish momentum.

Solana’s open interest (OI) in futures markets has surged to an all-time high of $13.68 billion, reflecting heightened speculative activity and institutional interest. This surge in OI aligns with a 17% rise in the asset’s price to around $217. Analysts note that such high levels of open interest often precede significant price movements, as seen in previous periods when a 188% increase in OI was followed by a 103% increase in SOL price. This surge is attributed to the approval of the Alpenglow upgrade, which improved Solana’s transaction finality to 150 milliseconds and increased throughput to 107,540 transactions per second.

Despite these developments, on-chain activity in Solana’s DeFi ecosystem shows mixed signals. While Solana’s total value locked (TVL) has grown to $13 billion, up 30% from $10 billion in July, network activity has not kept pace with price gains. Over the past 30 days, Solana’s transaction count has declined by 99%, and the number of active addresses has fallen by 22%. In contrast, Ethereum’s transaction volume increased by 39% during the same period, according to Nansen data. Decentralized exchange (DEX) activity on Solana also fell for the third consecutive week, with weekly DEX volumes dropping by 65% to $10.673 billion.

The broader DeFi ecosystem has experienced a surge in TVL, which climbed 41% in the third quarter of 2025, surpassing $160 billion for the first time since May 2022. Ethereum led this growth with a 50% increase in TVL from $54 billion to $96.5 billion, while Solana contributed a 30% increase to $13 billion. This growth is attributed to renewed investor confidence following regulatory clarity from U.S. agencies, particularly the passage of the CLARITY Act and the GENIUS Act in mid-July. Protocols such as Aave, Lido, and EigenLayer have seen significant gains, driven by rising demand for yield-generating assets in the DeFi space.

However, some analysts caution that high TVL figures do not always correlate with strong on-chain activity or long-term sustainability. While TVL serves as a useful metric for assessing investor interest and liquidity in a DeFi project, it does not account for user engagement or transactional activity. For instance, despite Solana’s strong TVL figures, declining transaction counts and active address metrics raise questions about the platform’s overall usage. Analysts suggest that investors should consider multiple factors, including governance structure, tokenomics, and project reputation, when evaluating the potential of a DeFi platform.

Looking ahead, analysts like Gally Sama have emphasized that a decisive break above $210 could set the stage for further price discovery, with a target of $1,000 for SOL if resistance levels are successfully overcome. The current bullish setup is being closely monitored by traders and investors, particularly with the broader crypto market showing signs of stabilization and renewed optimism. While challenges remain, particularly around on-chain activity, the combination of strong technical indicators, high open interest, and regulatory developments suggests that Solana could remain a key player in the DeFi landscape.

Source: [1] Solana Open Interest Hits $13B All-time High (https://cointelegraph.com/news/solana-charts-1000-sol-price-target-open-interest-all-time-highs) [2] DeFi TVL Surges 41% in Q3 to Three-Year High (https://thedefiant.io/news/defi/defi-tvl-surges-41-in-q3-to-three-year-high) [3] Understanding Total Value Locked (TVL) in Cryptocurrency (https://www.investopedia.com/total-value-locked-7486821)