2023 marked a transformative year for Solana, as the blockchain platform navigated through challenges and emerged stronger. The funding rates throughout the year reflected this journey, showcasing periods of extreme volatility, cautious optimism, and eventually, renewed enthusiasm for Solana's potential.
The first quarter of 2023 began with Solana facing significant challenges. January saw an average rate of -0.03541%, reflecting the market's pessimism following the FTX collapse. The month started with extreme negative rates, reaching a low of -0.50444% on January 4th, as Solana's price struggled below $10.
February marked a turning point with the average rate improving to 0.00482%. While still volatile, the month saw more positive sentiment, with rates often reaching 0.01% or higher, coinciding with Solana's price recovery above $20.
March continued the positive trend with an average rate of 0.00323%. The month experienced fluctuations but maintained overall positive sentiment, with rates peaking at 0.01388% on March 15th as Solana pushed towards $24.
The second quarter showed consistent improvement in funding rates. April saw a significant jump with an average rate of 0.00939%, indicating growing optimism. The month reached a high of 0.03362% on April 17th, as Solana's price surged above $25.
May maintained positive sentiment with an average rate of 0.00676%. The month saw stable rates, often fluctuating between 0.003% and 0.01%, reflecting steady market confidence as Solana consolidated around $20.
June experienced a slight cooldown with the average rate dropping to 0.00254%. The month saw more volatility, with some negative rates, particularly on June 10th at -0.02088%, but overall maintained a cautiously optimistic outlook.
The third quarter began with renewed optimism. July's average rate increased to 0.00723%, with daily rates generally fluctuating between 0.005% and 0.01%. A notable spike occurred on July 14th, reaching 0.02359% as Solana's price approached $30.
August initially maintained positive momentum with an average rate of 0.00346%. However, the latter half of the month saw increased volatility and some negative rates, reflecting market uncertainty as Solana's price struggled to maintain above $20.
September marked a downturn with the average rate dropping to -0.00604%. The month experienced several days of significant negative rates, reaching -0.03119% on September 10th, coinciding with broader market challenges and Solana's price dipping below $20.
The final quarter of 2023 witnessed a dramatic shift in Solana's fortunes. October started cautiously with a negative average rate of -0.00200%, but showed signs of recovery towards the end of the month.
November marked a significant turnaround with the average rate surging to 0.01355%. The month saw consistently positive rates, peaking at 0.03631% on November 12th, as Solana's price broke above $60, driven by renewed interest in the ecosystem.
December cemented Solana's comeback with an impressive average rate of 0.02486%. The month witnessed unprecedented positive funding, particularly in its latter half. December 28th saw an extraordinary rate of 0.07355%, the highest of the year, as Solana surged past $100, reclaiming its position as a major player in the crypto space.
The year 2023 demonstrated Solana's resilience and ability to overcome challenges. From the negative sentiment at the start of the year to the explosive rally in Q4, funding rates provided a clear reflection of the market's changing perception. These fluctuations coincided with Solana's price journey from around $10 at the start of the year to over $100 by year's end, showcasing a remarkable recovery and setting the stage for potential further growth in 2024.
