2022 proved to be a tumultuous year for Solana, as the blockchain platform faced numerous challenges amidst a broader crypto market downturn. The funding rates throughout the year reflected this turbulent journey, showcasing periods of optimism, uncertainty, and eventually, significant distress.
The first quarter of 2022 began with modest positive sentiment for Solana. January saw an average rate of 0.00522%, reflecting cautious optimism. However, the month experienced volatility, with rates dropping to -0.01757% on January 23rd as Solana's price struggled below $100.
February marked a period of consolidation with a slightly positive average rate of 0.00026%. The month saw fluctuations between positive and negative rates, mirroring the uncertain market conditions.
March showed renewed confidence with an increased average rate of 0.00855%. The month consistently maintained positive rates, often reaching 0.01%, coinciding with Solana's push towards $120.
The second quarter witnessed a gradual decline in funding rates. April started positively with an average rate of 0.00494%, but showed signs of weakening sentiment towards the end of the month.
May marked a significant downturn with the average rate plummeting to -0.01483%. The month experienced extreme negative rates, reaching a low of -0.12552% on May 12th, as Solana's price dropped below $50 amidst a broader crypto market crash.
June continued the negative trend with an average rate of -0.00859%. The month saw several days of significant negative rates, particularly in mid-June, reflecting the market's pessimism as Solana's price fell below $30.
The third quarter began with signs of recovery. July's average rate turned positive at 0.00367%, with daily rates generally fluctuating between -0.01% and 0.01%. This period aligned with Solana's price recovery above $40.
August saw a slight setback with the average rate dropping to -0.00147%. The month started positively but ended with a series of negative rates, reaching -0.04446% on August 27th as Solana's price struggled to maintain support above $30.
September showed a modest improvement with a positive average rate of 0.00259%. The month experienced less volatility compared to August, reflecting a period of consolidation for Solana around the $30 mark.
The final quarter of 2022 started cautiously but ended in turmoil. October maintained a positive average rate of 0.00278%, with daily rates generally fluctuating within a narrow range.
November marked a catastrophic turn of events with the average rate plummeting to -0.15862%. This dramatic downturn was primarily due to the FTX exchange collapse, with rates hitting an extreme low of -1.47653% on November 10th. This period coincided with Solana's price crashing below $15, marking its lowest point of the year.
December showed signs of stabilization but remained negative with an average rate of -0.01361%. While the month started with improving rates, it ended on a somber note with rates dropping to -0.24566% on December 30th, reflecting ongoing market uncertainty.
The year 2022 demonstrated the volatile nature of Solana funding rates, mirroring the broader cryptocurrency market's challenges. From the cautious optimism in Q1 to the market-wide crash in Q2, and the devastating impact of the FTX collapse in Q4, funding rates provided a clear reflection of the market's tumultuous journey. These fluctuations coincided with Solana's price movement from around $170 at the start of the year to approximately $10 by year-end, highlighting the significant challenges faced by the blockchain platform throughout the year.
