Solana‘s non-vote transactions plummeted nearly 63% in August, dropping from July’s year-to-date high of 1.31 billion to 485.61 million per recent data.
This significant decline brought transaction activity to levels not seen since September 2023, falling below 700 million transactions observed in every prior month of 2024.
Despite this drop, some analysts predict that Solana could outperform other major cryptocurrencies if the U.S. Federal Reserve’s expected rate cut improves liquidity in the market. Ryan Lee, Chief Analyst at Bitget Research, suggested that better liquidity could see Solana outperforming assets like Bitcoin and Ethereum.
As the U.S. Federal Open Market Committee (FOMC) meeting approaches in mid-September, traders are forecasting a 69% chance of a 25-basis-point rate cut and a 31% chance of a 50-basis-point cut, according to the CME FedWatch tool.
Lee pointed to recent developments in key Solana projects, such as Solayer’s new staking window, as potential drivers for increased market interest in Solana.
He also noted that increased decentralized exchange (DEX) activity could further boost Solana’s value, predicting that DEX trading volume on Solana will likely remain volatile but high in September.
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