What happened?
Momentum is building on the Solana network, with significant increases in both non-voted transactions and transactions per second in July, indicating a surge in real network activity. This uptick comes despite Solana’s price being significantly below its all-time high, boosting optimistic price forecasts. Additionally, the total value locked in Solana’s native tokens has reached a three-year high, nearing 60 million tokens.
Who does this affect?
This development primarily affects Solana investors and users, decentralized finance (DeFi) developers, and traders looking for opportunities in altcoins. The rise in transaction activity and value locked points to increased user engagement and DeFi protocol adoption on the Solana network. It also draws attention from speculators and analysts anticipating market movements tied to economic shifts such as potential interest rate cuts.
Why does this matter?
This matters because it signals a potential shift in the cryptocurrency market, particularly for altcoins like Solana, which may benefit from increased liquidity if expected interest rate cuts occur. Growing activity on the Solana network could lead to renewed interest from investors and drive up the asset’s price. The potential for Solana to reach new price milestones could attract more capital inflow into the network, further supporting an upward trend in the crypto market.