How Solana's bull run boosted trading activity on centralized exchanges

Journalist

Posted: November 15, 2023

SOL accounted for 8.85% of the total exchange volume on 11th November.
SOL was the best-performing large-cap crypto asset in the last 30 days.

Solana [SOL] was one of the most talked-about altcoins in the market, owing to an impressive rally in recent weeks.

Indeed, SOL was the best-performing large-cap crypto asset in the last 30 days, more than doubling its value to $58.42 at press time, as per Santiment data analyzed by AMBCrypto.

The sharp jump in value made investors optimistic about the sixth-largest digital asset in the market as evidenced by the positive values of the Weighted Sentiment indicator.

Source: Santiment

SOL sees a jump in trading volume

Trading activity on centralized exchanges reflected this optimism. According to a recent post by digital asset data provider CCData, SOL’s trading dominance hit a record high of 5.54% in November.

In fact, SOL accounted for 8.85% of the total exchange volumes on 11th November, going past the previous record of 8.66% in September 2021. This was understandable as SOL leaped to its yearly high of $62 on 11th November.

Source: CCData

Derivatives market get energized

The rich vein of form also boosted speculative interest in SOL. Open Interest (OI) in SOL futures contracts on Binance jumped 30% month-to-date (MTD), as per AMBCrypto’s scrutiny of Santiment data.

Source: Santiment

Moreover, the funding rates on the exchange have been in positive territory since the beginning of the month. When the funding rate is positive and increasing over time, it is indicative of a bullish market trend.

Another way of confirming the bullish narrative was by looking at the number of long and short positions taken for the coin.

AMBCrypto discovered that the number of bullish-leveraged traders was 1.04 times higher than that of bearish traders, as per data from Coinglass.

Source: Coinglass

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Historic month for Solana DEXes

The price rally coincided with Solana’s highest ever monthly DEX volume, as evident by DeFiLlama’s data below.

Trades worth $3.23 billion were executed on Solana-based DEXes until mid-November, more than the previous peak in November 2o22. With about half of the month still remaining, November 2023 was on track to record historically high volumes.