Solana Network Transaction Volume Hits Monthly Low in August

Monthly Non-Voting Transactions Solana brush

-1.44%
The network fell about 63% from its peak of 1.31 billion at the beginning of July to 485.61 million in August. Data dashboard of the block.

Transaction activity on the Solana blockchain declined significantly in August, falling below levels seen throughout most of 2024. All previous months in 2024 had been above 700 million. This decline brings transaction activity back to levels not seen since September 2023, when it was 494 million.

However, one analyst predicted that Solana could outperform other major cryptocurrencies as liquidity improves and riskier assets gain traction, as the U.S. Federal Reserve is expected to cut interest rates at its September meeting.

“Due to improved liquidity, Solana has the potential to outperform major assets like bitcoin and ether,” Ryan Lee, senior analyst at Bitget Research, told The Block in an email.

Ahead of the Fed’s mid-September Federal Open Market Committee (FOMC) meeting, interest rate traders see a 69% chance of a 25bp cut later this month, and a 31% chance of a 50bp cut, according to the CME FedWatch tool.

Solana price may rise on expectations of Fed rate cut

Lee highlighted that Solana’s recent major projects could be a potential catalyst to increase Solana’s value in highly liquid markets.

“The operational status of Solana’s core projects, such as Solayer, which recently opened a staking window, is expected to attract Solana funds from the market, which may increase buying pressure in the secondary market and reduce the circulating supply,” Lee said.

The analyst added that increased decentralized trading activity could boost Solana’s price.Solana“DEX trading volumes are expected to remain highly volatile in September,” he added.

According to The Block’s pricing page, Solana’s value has been dropping over the past 24 hours, with the token down 2% to trade at $130.68 at 1:26 p.m. ET.

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