On September 11, the price of Solana fell to $128.40, but then rebounded rapidly within the next 24 hours, reaching a high of around $135. Analysis shows that this round of increase was driven by multiple positive factors, including the latest inflation data in the United States, the development of the Solana network and its ecosystem.
US Inflation Declines, Solana DEX Activity Increases
On September 11, the market overreacted to the rise in consumer prices (excluding food and energy) to 3.2%, and many analysts revised their forecasts for the Fed's 0.50% rate cut. But investor sentiment changed again with the positive impact of increased US consumer demand. The US producer price data released on September 12 eased some of the market's concerns about inflation. Wholesale prices increased by 1.7% year-on-year in August, in line with the Fed's 2% inflation target, which to some extent reduced market concerns about continued high inflation in the United States and reduced risks for companies that rely on consumer spending. In addition to macroeconomic factors, SOL has also benefited from increased on-chain activity. This includes the launch of new DApp programs within its ecosystem, expectations for token airdrops, improvements to liquidity staking and re-staking incentives, and growth in trading of SPL tokens (including meme coins). Data shows that trading volume on decentralized exchanges on the SOL chain has increased by 7% since September 5. In addition, the TVL of the Solana network has also increased by 11% in the past month and currently accumulates to 36 million SOL. Most of the staking growth came from the DEX platform Jupiter and the on-chain perpetual futures platform Drift. But outside of these leading platforms, the activity of other DApps on the Solana network has declined significantly.
Will the Solana Breakpoint conference and the issuance of SPL tokens affect the price of SOL?
The recent bullish trend of Solana's newly launched SPL token has reignited the enthusiasm of SOL investors, especially with the positive stimulus of the upcoming token airdrop and project announcements. Since September 6, the outstanding currencies on the Solana chain include Pyth Network (PYTH) +13%, Render (RNDR) +12%, Book of Meme (BOME) +10% and The Graph (GRT) +9%. Tom Wan, an on-chain data analyst at 21Shares, pointed out that compared with Ethereum, the number of tokens staked for liquidity on the Solana chain is more than twice that of Ethereum, with more than 60 tokens available. He explained that these tokens are mainly used as collateral in DeFi protocols, which may increase the adoption and trading volume of perpetual futures. Disclaimer: FameEX does not guarantee the accuracy and suitability of official statements of data released by the exchange in this field, or any related financial advice.
