Recently, I found that the situation of Solana has changed a lot. It seems that people's needs are completely different from before. I wonder if there is any connection between the price of SOL and the market value of its stablecoin?

You see, in the first half of this year, the momentum of cryptocurrency was like a rocket, soaring up, and every time it fell, it would quickly get up. But SOL, in recent times, has been like a tired old horse, and its rebound has been weak.

I have made a special observation and found that the rebound of SOL in the past three months has been very weak, which is consistent with the situation of the Solana network. You can see that from this year to now, the market value of Solana has been up and down, which is in line with the price trend of SOL.

Take the last week of August for example, the market value of Solana's stablecoin soared to over $4 billion, but soon the funds began to flow out, and now it has dropped to $3.72 billion. This kind of sharp drop last occurred from mid-April to the last week of June.

At that time, SOL also wanted to reach $200, but it failed to reach that level. Now, looking at its rising trend, it seems to be weak.

I was wondering if the activity of the Solana network has also started to slow down? In the past, the market value of Solana's stablecoins rose as soon as the market demand increased, especially in the first quarter of this year, when the demand for meme coins was so strong. But since June, the popularity of meme coins has melted away quickly, just like ice cream in summer.

If you look at the network fees, they were shockingly high in March, when network demand and utilities were also extremely hot. But this fee also fluctuates with the value of SOL and market demand, so sometimes it is not very accurate. In contrast, the market value of Solana stablecoin can better reflect the real transaction situation on the chain.

At the beginning, the transaction volume was amazing, reaching a peak in April, then fell in July, but then it peaked again. But after that, the transaction speed slowed down, which shows that the network utility has also begun to cool down.

So, I think the demand for the Internet is clearly cooling down, especially in the past three months. As a result, the organic demand supporting the value of SOL is not as strong as in the first half of the year.

This is probably why SOL’s rebound now is not that strong.