Solana TVL Climbs to Five-Week High as SOL Rebounds and Leverage Fades

Solana (SOL) has rebounded to around $80.84 even as derivatives traders dial back risk, with the network's total value locked (TVL) rising to its strongest level since early June. The mix of rising on-chain deposits and steady buying from long-term holders, alongside falling futures positioning, suggests the move is being driven by spot demand rather than leveraged speculation. Leverage was flushed out after a crowded-long setup. On July 4, SOL changed hands near $82 as open interest (the value of outstanding futures contracts) stood around $2.41 billion. Funding rates were positive at 0.009%, signalling an overbuilt long bias. When the market dipped, that positioning unwound: leveraged longs were forced out and SOL slid to about $79.72 on July 6, close to a 3% drop. Since then, open interest has cooled to roughly $2.20 billion and funding has eased to 0.004%. Even with fewer leveraged bets in the system, SOL recovered to about $80.84, pointing to underlying cash-market buying rather than a borrow-driven bounce. On-chain data also shows long-term holders stepping in. Wallets holding SOL for one to two years increased their share of supply from 14.64% to 15.60% since June 29, according to HODL Waves cohort analysis. This group accumulated through the pullback instead of selling, marking the largest build in weeks. As these holders absorb supply, fewer coins remain readily available for sale, helping explain why the July 4 liquidation did not cascade further. The same pattern appears in Solana's DeFi footprint. TVL rose about 10% from $4.66 billion on June 26 to around $5.11 billion on July 4, the highest reading since early June. Notably, TVL continued to rise as open interest fell and held near the highs through the subsequent price dip, indicating capital moving into applications rather than leverage moving into futures. Stablecoin liquidity supports the picture of available buying power. Stablecoin supply on Solana sits near $15.6 billion, just below the roughly $16 billion peak reached on July 3, and remains above late-June levels. Taken together—a leverage reset, long-term holder accumulation, and a rising TVL backdrop—the rally appears to rest more on deposits and patient buyers than on funding-driven momentum. SOL is also up more than 9% over the past week. Whether the rebound can extend may show up first in TVL trends (network health) and holder flows (on-chain conviction).