The perpetual futures markets are heating up on Solana as activity follows the trend of Hyperliquid.

The perpetual futures markets continue to expand on Solana, turning this chain into a key hub for this type of trading. Although the volumes are still far from those of Hyperliquid, they reflect the overall demand for perpetual futures trading.

Solana is hosting a vibrant market for perpetual futures trading, recently breaking new records for daily volumes. According to data from Glassnode, open interest in perpetual futures on the network now exceeds $7 billion, indicating increasing market participation.

The trading of perpetual futures on DEX expanded based on SOL exchanges, as the asset surpassed $200. The recent market rally was driven by the increasing open interest, setting new records.

The increase in volumes coincides with an accelerated on-chain liquidation for SOL. The asset recovered above $218, generating a bullish outlook and potentially driving expanded trading volumes. SOL now enjoys a combination of centralized perpetual futures activities and DEX-based exchanges.

The growth in futures activities occurs at a time when the sentiment for SOL points to greed, according to the Solana fear and greed index.

SOL trades at peak open interest

The open interest of SOL across all exchanges is also at a three-year peak of $7.48 billion, with more than 61% in long positions and the emergence of riskier short positions. Increased leveraged positions may also cause volatility in SOL, due to attempts to liquidate traders.

As of September 9, short positions hold over $25 million in liquidatable shorts, as SOL trading attracts riskier movements. The change in short positions followed the advance above $200, as the market anticipates a drop. In Hyperliquid, the largest individual whale position is short on SOL, with over $83 million in notional value and a significant unrealized loss during the recent rally.

The other potential path for SOL is another Solana season, driven by a mix of memes, loans, and other DeFi activities. The value locked is now above $12.24 billion, also reaching new historical peaks in recent weeks. The trading of perpetual futures also gained additional liquidity of $12.32 billion in stablecoins on the Solana network.

Jupiter and Drift drive the on-chain perpetual futures DEX on Solana

The on-chain futures for Solana are primarily active on Jupiter and Drift Protocol. As of August 25, Jupiter surpassed $25 billion in perpetual futures trades after months of growth. As previously reported by Cryptopolitan, August was a record month for perpetual futures activity on Solana.

Overall, Solana handles $1.10 billion in perpetual futures trading, spread across multiple DeFi protocols. Some of the protocols are still relatively small and competing for growth. Drift aims to attract more traders and users with passive income incentives.

In recent months, the perpetual futures volumes of Solana have exceeded $41 billion, making it the third largest network engaging in this type of decentralized activity. On Hyperliquid, the volumes are over $385 billion, although other chains are making their moves.

So far, Solana has managed to surpass Ethereum and BSC in monthly futures volumes, as well as established L2 chains like Arbitrum and Base. The trend of perpetual futures DEX may continue in the coming months, as permissionless chains offer access without KYC and increasing liquidity.

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Notice: For informational purposes only. Past performance is not indicative of future results.