Solana’s debut on the Chicago Mercantile Exchange (CME) futures market has stirred up the crypto community. On March 17, Solana futures (SOL) launched with a trading volume of $12.1 million. While this figure might seem impressive at first glance, it pales in comparison to the initial CME futures volumes of Bitcoin (BTC) and Ethereum (ETH). The crypto world is buzzing with questions: Was Solana’s launch a flop, or is there more excitement on the horizon?
Vetle Lunde, Head of Research at K33Research, took a deep dive into the numbers. He compared the launch day performances of Bitcoin, Ether, and Solana on the CME. The results? Solana’s trading volume and open interest were notably lower than its heavyweight counterparts. But hold on—there’s a twist. When you normalize these volumes against each crypto’s market cap, Solana’s figures align more closely with Bitcoin and Ethereum.
Normalized volume is a crucial metric in the crypto space. It measures trading activity relative to a cryptocurrency’s market cap, offering a clearer picture of institutional interest. In this context, Bitcoin leads with a normalized volume of 0.0319%, while ETH and SOL trail behind with 0.0173% and 0.0166%, respectively. This suggests that, per unit of market cap, Bitcoin still reigns supreme in investor interest.
Interestingly, the similarity between ETH’s and SOL’s normalized volumes indicates that Solana’s trading activity isn’t as far off from Ether’s as it might appear. Despite a $20 million gap in day-one trading volumes, Solana is showing signs of holding its own.
The big question now is whether SOL CME futures will mirror the trajectories of BTC or ETH. When Bitcoin CME futures launched in December 2017, BTC saw a sharp decline, marking the start of a bear market. In contrast, Ethereum experienced a significant rally post-CME launch, hitting new all-time highs before undergoing corrections.
For Solana, the immediate post-launch period hasn’t seen a dramatic price surge. This lack of movement might suggest muted investor enthusiasm. However, the long-term outlook could be more promising. Solana’s presence on the CME opens doors for increased liquidity and price discovery, potentially drawing more institutional players into the fold.
As market conditions evolve and bullish trends emerge, Solana might just capture the attention it needs to thrive. While the initial launch may not have set the world on fire, the future could hold more surprises for this rising star in the crypto universe.
In conclusion, while Solana’s CME futures debut didn’t break records, it’s far from being written off. The crypto world knows that patience often pays off, and Solana might just be gearing up for its moment in the spotlight. Keep an eye on this one—there could be more to come!
