Key Takeaways:
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Solana’s network activity and fees have refused, but the expectations of the ETF spot maintain the investor’s interest in Sol.
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Maintaining validator and staking inflation revenue are risks, but institutional flows can drive solubles.
Solana’s native token, Sol (Sol), climbed 10.5% after a test at the level of $ 191 on Friday. Even with this rebound, the price of the token remains 10% less than the past two weeks, the trailing rivals ether (Eth) and bnb (Bnb). Entrepreneurs are now weighing Sol’s chances to climb back to $ 250 and try to understand the factors behind its weaker performance.
The investor’s sentiment improved on the weekend after US President Donald Trump signed his desire to avoid a closing government of non -essential federal agencies. However, Congress has yet to ensure the 60 votes needed to pass a temporary funding bill on Tuesday, which is at risk of “unpredictable and immediate economic ripples,” According to In Yahoo Finance.
Meanwhile, gold reached a full time of $ 3,833 on Monday, grounding the ongoing departure about US financial outlook. Although lawmakers have hit a short-term deal, Treasury should still pay more than $ 1 trillion annually in interest. Expanding the gap between government revenues and expenditure drives saves towards deficiencies of property, including cryptocurrencies.
Although the broader cryptocurrency market was posting the acquisitions on Monday, Sol was no longer encountered at a $ 212 level. Part of the frustration with investors comes from denying activity throughout Solana.
During the past seven days, the number of transactions in Solana fell 10%, as the fees dropped by about 50%, according to Nansen data. In contrast, many competitors have posted noticeable increases, including a 56% jumping on BNB chain fees, while Arbitrum and Hyperevm are more than double their paying income from last week.
Perpetual Futures Surge in Hyperliquid, Aster, while Edgex is hurting Sol Sol
The rapid synthetic expansion of eternal futures in Hyperliquid, Aster and Edgex also weighs feelings towards Sol. Solana sometimes led the decentralized exchange activity through platforms such as Meteora, Raydium and Pump, which led to many SOL holders to overcome the network’s competitive edge to user fees and experiences.
Hyperliquid is selected to launch one’s own chain to reduce fees and eliminate validators’ maximum can be obtained amount (Mev). Aster, a project supported by YZI LABS (former Binance Labs) and currently integrated into BNB chain, also plans to introduce one’s own layer-1 Network.
For the Sol Bulls, the strongest catalyst for the return of token underperformance is the expected approval of the United States Securities and Exchange Commission (SEC). The regulator is facing a Final Deadline on October 10And analysts have appointed odds of 95% or higher in a approval, fuel hopes for a large flow in the early months of trading.
Related: Aster schedules weighted vesting schedules for token recipients AirDrop
Sol’s momentum also depends on how investors look at the native staking harvest. Critics warn that Solana’s inflation is at risk, given nearly 1,000 network validators and their significant Setup and operational costs.
According to X user ‘boxmining,’ 76% of the Validator’s revenue on the Solana network is derived from newly issued coins, instead of MEV or priority fees. The review raises questions about maintaining the staking reward rate in the coming years, which can weigh demand for a Solana ETF.
Entrepreneurs should not assume a price collapse based solely on the weaker onchain activity, as the flowers from companies that accumulate SOL reserves and the potential approval of an ETF area can set a stage for a sol rally towards $ 250.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
