Solana Derivatives: 66.8% Long Accounts Meet Negative Funding
Solana derivatives are sending a conflicted signal at $120.17: the average 8-hour funding rate is negative at -0.021433%, while 66.8% of tracked accounts remain long. With open interest near $5.2B and 24-hour volume down 70.3%, the market is not showing broad fresh participation; it is showing a crowded positioning battle with a potentially sharp squeeze risk.
The wider market conversation is still focused on Solana’s growth prospects, relative standing against other major networks and the possibility of a move toward higher prices, but derivatives positioning is offering a more tactical warning.
Negative funding is uneven, not universal
Current funding differs materially by venue. Bybit is positive at 0.00837%, while Bitget is negative at -0.0077%, Gate is negative at -0.0067% and OKX is negative at -0.001435%. Binance is positive at 0.003056%, and BitMEX is also positive at 0.01%. That dispersion matters: the aggregate negative reading does not mean every short is being rewarded. Instead, it suggests that positioning pressure is concentrated across selected venues while other books still carry a premium for longs.
The futures basis reinforces the defensive tone. Basis is -3.3% annualized at -12.1%, meaning leveraged traders are not paying up for exposure even as the spot price holds above $120. A negative basis combined with mixed funding is more consistent with hedging and short-side demand than with a confident directional breakout.
Open interest is concentrated but shrinking
Total open interest is $5.2B, down 1.1% over 24 hours, even though it has risen 0.3% over the latest hour. Binance holds the largest disclosed share at 19.2%, with $988.0M and a 1.3% daily decline. Gate follows with 17.4% and $897.7M after a sharper 3.0% drop, while Bybit holds 13.3% and $685.9M after a 0.6% increase. OKX and Bitget are smaller at 7.0% and 9.4%, with both showing 0.7% daily growth.
This split points to rotation rather than broad accumulation. The largest books are not moving in unison, and the contraction at Gate and Binance offsets growth at Bybit, OKX and Bitget. A negative funding signal backed by falling aggregate open interest is therefore less a confirmed trend than an indication that traders are reducing or transferring risk.
Liquidations favor the squeeze interpretation
Short liquidations have dominated every meaningful window. In the latest hour, short positions accounted for $72.4K of liquidations, with no long liquidations recorded. Over 12 hours, shorts lost $156.5K versus $11.9K for longs. Across 24 hours, short liquidations reached $537.7K, compared with $103.7K on the long side, for a $641.4K total.
The largest recorded event was a $85.2K short liquidation on Binance near $120.23. Other notable short liquidations occurred near $119.95 on Binance and $120.14 and $120.11 on Bybit, while a $81.8K long liquidation appeared near $118.58. These prices define a narrow battlefield around the current market.
The account-versus-taker split adds another layer. Account data is long-heavy on Binance at 64.6%, OKX at 64.0%, Bybit at 69.3%, Bitget at 75.3% and Gate at 59.9%. Yet active takers are only 42.8% long overall: Binance takers are 60.0% long, OKX takers are 38.8% long and Gate takers are 63.3% long. Passive accounts are positioned for upside, but recent aggressive flow is mixed and notably short on OKX.
Verdict: The immediate bias is a fragile short-squeeze setup, not a clean bearish breakdown. Holding $118.58 while open interest rebuilds above $5.2B would favor a push through the $120.23 liquidation zone; the view is invalidated if SOL breaks below $118.58 while open interest slips under $5.1B and long liquidations become the dominant flow. Data as of 09:05 Beijing time on Oct 4, covering Binance, OKX, Bybit and other major venues.