Solana network sees retrace to 1.1 billion transactions in August following July peak

Quick Take

  • Monthly non-vote transactions on Solana retraced slightly in August, coming after a high in July.
  • However, one analyst views the expected Fed rate cut as a potential boost for liquidity on the Solana network.

Correction: This article was amended to clarify that the number of transactions in August only fell midly as opposed to a larger retrace that was previously written based on inaccurate data.

Monthly non-vote transactions on the Solana blockchain retraced slightly in August after reaching highs of 1.3 billion transactions in July.

August's transaction activity fell back to the 1.1 billion mark, seeing a similar count to June, according to data from Artemis.

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 data on The Block's Price Page.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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