What I happened to see was cryptocurrency market news. Among them, there was one name that kept catching my eye: 'Solana.'
And one keyword that appeared repeatedly was the reason for Solana's rise. For some reason, unlike other coins, people were attaching explanations like 'technology,' 'speed,' and 'gas fees.'
Solana was already a platform where various projects were being built with fast processing speed and low transaction fees, and it was particularly growing rapidly in the NFT, gaming, and DeFi sectors.
Of course, there have been a few critical issues in the past, such as network outages, but since then the development team has been praised for improving the structure and increasing stability.
All of these elements have come together to create the current upward trend. This was the essence of the reasons for Solana's rise. However, I also learned that there are things to be cautious about within this trend.
It is precisely the 'funding fee.' On the surface, it seems like a structure where 'if the price goes up, you make money,' but in futures trading, there are costs involved in maintaining positions. Particularly, as more people flock to long positions, the funding fee increases, and even if you make a profit, the actual money you end up with decreases.
So instead of simply saying, 'It's going up, so I’ll go long!' I realized that I need to understand why it is rising, that is, to accurately know the 'reasons for Solana's rise.'
The funding fee is ultimately a structure derived from the background of the rise and the balance of positions, so if you do not understand its cause, you are likely to get trapped in an unfavorable cost structure.
In this article, I would like to summarize the 'reasons for Solana's rise' that have been circulating in the market recently. I also plan to clarify the concept of funding fees and precautions that many might overlook.
In a market where there is too much information and issues change several times a day, I believe that the ability to penetrate the essence is the most important weapon.
The reason for approaching this cautiously is right here. Rather than superficially accepting the reasons for Solana's rise, I believe that if we look at it from technical, market, and psychological perspectives, we can set a much more stable direction in margin trading or futures investing.
If there is anyone reading this who is preparing for a new start like I am, I hope this summary can help you find some direction.
And above all, the person who accurately understands and acts on the 'reasons for Solana's rise' is ultimately the one who wins in the market. I want to emphasize that there are definitely opportunities for those who start late as well.
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