Solana’s price rebounded on 12 September, trading near $135 after briefly dipping to $128.40 the day before. The price movement mirrored broader cryptocurrency market fluctuations following the release of US inflation data. Additionally, rising activity within the Solana ecosystem has further driven the token’s recent gains.

US inflation and Solana’s ecosystem boost SOL

Initial market reactions to the 3.2% US consumer price increase led analysts to lower expectations of a 0.50% interest rate cut by the Federal Reserve. However, investor sentiment improved after US producer price data eased inflation concerns. An annual 1.7% rise in wholesale prices in August aligned with the Federal Reserve’s 2% inflation target, reducing fears of prolonged inflation.

SOL/USD price (blue) vs. total crypto cap (magenta). Source: TradingView

Beyond macroeconomic factors, Solana’s ecosystem has seen increased activity. Notably, decentralized applications (DApps), token airdrops, and developments in liquid staking have all contributed to higher demand for SOL. Trading volumes on decentralized exchanges (DEXs) have risen by 7% since 5 September, and the total value locked (TVL) on the Solana network has increased by 11% over the past month.

Anticipation builds ahead of Solana Breakpoint conference

Upcoming events like the Solana Breakpoint conference, starting on 20 September in Singapore, and new project launches, such as the BNSOL staking token by Binance, have also generated excitement. The anticipation of token airdrops and further ecosystem developments have bolstered investor confidence in Solana.

Solana network top DApps ranked by 30-day active addresses. Source: DappRadar

SOL’s positive performance is driven by multiple factors, including the easing of US inflation risks, strong activity within its DApps, and growing anticipation for the Solana Breakpoint conference.