Solana (SOL) price is at $131, with altcoins generally experiencing losses over 2%. As BTC fluctuates below $58,000, current levels for altcoins are not surprising. The situation for Solana (SOL) is worse as network activity has hit new lows. Let's examine the current status and look at future predictions.
Solana Network Data
We already mentioned the decline in volume, indicating a significant weekly low. The proportion of non-voting transactions on the Solana network has also significantly decreased. This shows that investors are interacting much less with applications on Solana. Transactions, which fell by 63% from the 2024 peak, dropped to 485 million in August. At the peak of the year in July, this was 1.31 billion.
Transaction activity in August, which ended a few days ago, also dropped to 494 million. While 700 million transactions were made monthly on the network, this latest level is almost the same as the low in October 2023. In summary, there is a lack of interest in the Solana (SOL) network.
We can relate this lack of interest to the general market appetite hitting new lows, as the strength in Solana network activity was heavily supported by meme coin FOMO.
Future of SOL Coin
Bitget Research Chief Analyst Ryan Lee is not pessimistic. He says that the increased liquidity following the interest rate decision on September 18 will support the price of SOL Coin, just like other major altcoins. This is not something we can be sure of because Japan's potential continuation of interest rate hikes could trigger carry trade unwinding, posing a nightmare for risk assets.
In his latest assessment, Lee said:
“The operational status of fundamental projects on Solana, like Solayer, which recently opened a staking window, is expected to attract market Solana funds, increasing buying pressure in the secondary market and reducing circulating supply. Solana's DEX trading volume is expected to see significant fluctuations in September.”
Of course, he cannot see the future and may be wrong in his predictions. Therefore, it is much better for you to make your investment decisions on your own. Because you will be the only one to celebrate or regret your losses and gains.