Solana (SOL) rose back to around $80.84 even as traders reduced leverage, and Solana TVL reached its highest level since early June, a sign that real money is supporting the move.
Deposits in Solana applications and purchases from long-term holders are rising while futures positions are shrinking. This combination indicates spot demand rather than borrowed bets.
The leverage comes out after the squeeze
On July 4, SOL was trading near US$82 with open interest, meaning the total value of active futures was around US$2.41 billion. Its funding ratio, a small graphic that shows whether traders are inclined to buy or sell, settled positive at 0.009%, a sign of crowded long bets.
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This position was unwound when the market fell, unloading leveraged long trades and pulling SOL down to around $79.72 on July 6, nearly a 3% decline. Pressure like this forces exhausted buyers to sell, but it also removes fragile bets.
Since then, open interest has fallen to around $2.20 billion, and funding has slowed to 0.004%. However, SOL price recovered to $80.84, so the offer now appears to be driven by the spot rate rather than borrowed.
Leverage-based rallies tend to reverse quickly once funding becomes volatile. A move that is consolidating while open interest is falling usually has real demand behind it.
Long-term holders continue to buy the dip
The recovery coincides with continued buying from more patient Solana governors. Holders who have held SOL for one to two years have increased their stake in the supply from 14.64% to 15.60% since June 29. The holder’s conviction here comes from HODL Waves, an on-chain metric that groups Solana’s supply into groups based on how long the coins have been held.
This group added coins during the changeover rather than selling them, suggesting… The largest accumulation in weeks.
Because these Long-term shareholders continue to buy Through fluctuations, the pool of coins available for sale continues to shrink. This absorption helps explain why the Fourth of July wave did not deepen.
Solana TVL hits five-week high
The same picture appears in Solana TVL, or Total Value Locked, which is the amount of money deposited via the network’s applications. It rose about 10% from $4.66 billion on June 26 to about $5.11 billion on July 4, also its highest level since early June.
And most importantly Solana Devi TVL It continued to rise while open interest fell, and maintained its highs during falling prices. Capital flows into applications, not leverage in futures.
Deposits started growing around late June, and long-term holders of the same window started adding. This overlap suggests that the two trends share a source, which is firm conviction rather than rapid trade.
The stablecoin offering on Solana strengthens this cause. It stands at about $15.6 billion, just below the peak of about $16 billion set on July 3, leaving dry powder that can fund more purchases if demand continues. The supply of stablecoins remains above late June levels.
Together, the leverage reset, rack accumulation and Solana TVL rise point in one direction. This move relies on deposits and patient buyers, not financing, giving it a stronger base than a leveraged bounce. Even more so when Solana price rises by more than 9% in the weekly time frame. Whether it will continue may appear first in TVL (network integrity) and carrier flows (on-chain conviction).
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