Solana Price Faces Pressure as Negative Futures Funding Raises $78 Concerns

Solana is facing fresh selling pressure after its futures funding rate turned negative, signaling rising bearish sentiment among traders. The change comes as network activity weakens and competition from rival blockchains increases.

Solana Futures Funding Rate Turns Negative

Solana’s native token SOL has fallen around 15% after failing to hold above the $98 level reached on May 11. By Tuesday, the token revisited the $83 support area, while perpetual futures funding rates slipped to negative 3%, down sharply from positive 8% recorded just days earlier.

A negative funding rate often suggests traders are increasingly betting on lower prices, showing stronger demand for short positions. Under normal market conditions, funding rates usually stay near positive 9%, reflecting stable leverage demand.

Solana DEX Activity and Revenue Continue to Decline

Network activity has also slowed significantly. Weekly decentralized exchange (DEX) trading volume on Solana dropped to nearly $11 billion, compared with around $25 billion in January, marking a decline of more than 50%.

Revenue from Solana based decentralized applications has stabilized near $20 million weekly, lower than January’s average of $35 million. Major contributors include Pump, Axiom Pro, Phantom and Jupiter, which together control nearly 65% of network revenue.

Rival Networks Add More Pressure on SOL Price

Competition from networks such as Base and Hyperliquid is also growing. Hyperliquid continues gaining traction in perpetual trading, while Base benefits from deeper integration with the Coinbase ecosystem.

Some concerns have also emerged around suspicious trading activity on Solana-linked platforms, raising questions about whether certain volumes reflect genuine demand or automated trading behavior.