Solana network transactions hit multi-month low in August
Monthly non-vote transactions on the Solana network fell almost 63% from July's year-to-date high of 1.31 billion to 485.61 million for the month of August, according to The Block's Data Dashboard.
August's transaction activity on the Solana blockchain dropped significantly, falling below levels observed throughout most of 2024, where every preceding month surpassed 700 million transactions. This decline has seen activity return to levels not seen since September 2023, when there were 494 million transactions.
However, one analyst has forecasted that Solana could outperform other major cryptocurrencies if risk assets receive a boost from improved liquidity following the expected rate cut by the U.S. Federal Reserve at its September meeting.
"The improved liquidity could see Solana potentially outperform major assets like bitcoin and ether," Bitget Research Chief Analyst Ryan Lee said in an email to The Block.
Ahead of the U.S. central bank's Federal Open Market Committee (FOMC) meeting in mid-September, the CME FedWatch tool shows interest rate traders forecasting a 69% chance of a 25-basis-point cut and a 31% chance of a 50-basis-point cut later this month.
Solana price could appreciate on expected Fed rate cut
Lee highlighted recent advancements in key Solana projects as a potential catalyst for increasing Solana's value in a more liquid market.
"The operational status of core projects on Solana, such as Solayer, which recently opened a staking window, is expected to attract market Solana funds, and this could increase buying pressure in the secondary market and reduce circulating supply," Lee said.
The analyst added that increased decentralized exchange activity could see Solana's price appreciate. "Solana's DEX trading volume is expected to remain at a high level of fluctuation in September," he added.
Solana has decreased in value over the past 24 hours, with the token sliding 2% and changing hands for $130.68 at 1:26 p.m. ET, according to The Block's Price Page.
Source : The Block Crypto News - Sep 3, 2024
