I came across some news about the cryptocurrency market. Among them, one name constantly caught my attention: Solana.
Another keyword that keeps appearing is 'Why is Solana rising?' Unlike other coins, people always attach explanations, such as 'technology,' 'speed,' and 'fees.'
Solana has long been a platform for various projects to build on due to its fast processing speed and low transaction fees. It is growing particularly rapidly in areas such as NFTs, gaming, and DeFi.
Of course, there have been several serious network outages in the past. But the development team has since improved the architecture, and the platform is now considered more stable.
All of these factors combined contribute to Solana's current upward trend. This is the core reason for Solana's rise. However, I also learned that there is one point to be especially careful about in this trend.
That is the 'Funding Fee.' On the surface, rising prices mean making money, but in contract trading, there is also a cost to maintain positions. Especially when there are too many long positions, the funding fee will increase, and even if you make a profit, the amount you ultimately receive will be reduced.
Therefore, it is not enough to simply follow the trend and go long. You must understand the reasons for the rise—in other words, clearly understand the logic behind Solana's rise in order to take action.
Funding fees come from the fundamental factors behind price increases and the imbalance between positions. If you don't understand the reasons, you can get stuck in an unfavorable fee structure.
In this article, I want to summarize the recent discussions about the reasons for Solana's rise. At the same time, I would like to introduce the concept of funding fees and the precautions that many people often overlook.
In today's market of information overload and constantly changing headlines, the ability to understand the core is the strongest weapon.
Therefore, I decided to take a more cautious approach to the market—not just accepting the surface phenomenon of Solana's rise, but also analyzing it from technical, market, and psychological perspectives. I believe this will allow me to make more stable decisions in leveraged or contract trading.
If you are like me and are preparing to start a new investment journey, I hope this summary can help you find your way forward.
Most importantly, I want to emphasize: those who truly understand the reasons for Solana's rise will ultimately succeed in the market. Even latecomers still have a chance.
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