2021 marked a transformative year for Solana, as the blockchain platform gained significant traction and saw its value skyrocket. The funding rates throughout the year reflected this journey of rapid growth, showcasing periods of extreme optimism, volatility, and market sentiment shifts.
The first quarter of 2021 began with uncertainty for Solana but quickly turned to extreme optimism. January saw a negative average rate of -0.03428%, reflecting initial skepticism. The month experienced significant volatility, with rates dropping as low as -0.75000% on January 6th, indicating strong bearish sentiment.
February marked a dramatic turnaround with an average rate surging to 0.10368%. The month saw consistently high positive rates, peaking at 0.26697% on February 9th, coinciding with Solana's price breaking above $8.
March continued the positive trend with an average rate of 0.05786%. The month maintained strong bullish sentiment, with rates reaching 0.14276% on March 18th as Solana pushed towards $20.
The second quarter showed continued enthusiasm for Solana. April maintained a high average rate of 0.05346%, with several days seeing rates above 0.10%. This bullish sentiment aligned with Solana's price surge above $40.
May started strong but experienced a significant market correction. The average rate for the month decreased to 0.02829%, masking the extreme volatility. On May 19th, as the entire crypto market experienced a sharp downturn, the funding rate plummeted to -0.16760%, the lowest point of the quarter.
June saw a cooldown period with the average rate dropping to 0.00463%. The month maintained mostly stable rates at 0.01%, reflecting a period of consolidation as Solana's price fluctuated around $30.
The third quarter began with subdued activity. July maintained a low average rate of 0.00929%, with daily rates generally stable at 0.01%. This period coincided with Solana's price consolidation around $30.
August marked the beginning of a significant rally, with the average rate rising to 0.03623%. The month saw increasing volatility in funding rates, with some days approaching 0.10%, reflecting growing excitement as Solana's price surged past $100.
September maintained the positive momentum with an average rate of 0.03483%. The month started exceptionally strong, with rates reaching 0.13332% on September 6th as Solana pushed towards its all-time high near $200.
The final quarter of 2021 witnessed continued enthusiasm with some moderation. October started strongly with an average rate of 0.03799%. The month saw several spikes in funding rates, notably reaching 0.09197% on October 24th, as Solana maintained its position above $150.
November showed a slight decrease in rates but remained positive with an average of 0.02638%. While not as extreme as earlier in the year, the month still saw significant daily fluctuations, with rates often exceeding 0.05% in the first half of the month.
December marked a period of consolidation with the average rate cooling to 0.00995%. This moderation aligned with Solana's price stabilization around $180. The month ended on a calm note, with rates consistently at 0.01% in the final week.
The year 2021 demonstrated the explosive growth and volatility of Solana's ecosystem. From the initial uncertainty in January to the euphoric highs in the latter half of the year, funding rates provided a clear reflection of the market's evolving sentiment. These fluctuations coincided with Solana's remarkable price appreciation from around $1.50 at the start of the year to nearly $180 by year-end, showcasing the platform's emergence as a major player in the cryptocurrency space.
