- The price of Solana (SOL) has increased by 7% in the last 24 hours, according to data from Messari.
- The Federal Reserve revealed an interest hike of 25 percentage points in its latest FOMC meeting.
- A variety of recent developments have contributed to the rally.
On February 1st, 2023, the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) conducted its latest meeting, in which chair Jerome H. Powell revealed a 25 percentage point interest rate hike in pursuit of the Fed’s 2% inflation goal.
In the wake of the strenuous 50 percentage point hike implemented in December 2022, the recent lower-than-expected Fed rate hike varied the cryptocurrency charts. The price of Bitcoin (BTC) has inched toward $24K following the FOMC’s revelation, trading for $23,762 USD at the time of writing.
Accordingly, the price of Solana (SOL) has also increased 7% in the last 24 hours, according to data from Messari, trading at $24.95 at the time of writing.
Due to the timing of Solana’s Founders publishing an optimistic report on the future of the Solana ecosystem just one day before the FOMC meeting on January 31st, 2023, the question of what was truly behind the 7% surge in the price of Solana is being raised.
What’s Behind the SOL Surge?
The Solana community was divided about the true cause of Solana’s pump, expressing their varying opinions over social media.
@Mr_Burns_Sol, a member of the Solana community, displays optimism matching that of the founders by replying with a GIF that reads, “I’m all in.”
— MrBurns.sol (@Mr_Burns_Sol) January 31, 2023
A comment by Twitter user @Beefy111111 displays FUD about the optimistic report by Solana founders, replying with only a GIF to state a point:
— Moonbeef "(💙,🧡)" (@Beefy111111) January 31, 2023
The reactions from Twitter users could suggest that the founders’ report was not the root cause of the surge in the price of Solana.
Another account tweeted a GIF about the Bitcoin and Solana price increases, illustrating the potential that Solana is undergoing a bear trap in response to the FOMC’s meeting material results.
#cryptocurrencies Market mind-set #Bitcoin #Budget2023 #Solana #FOMC pic.twitter.com/JK518V4odu
— CRYPTO MOON (@cryptoo_moon) February 1, 2023
Despite its recent price action, it hasn’t all been sunshine and rainbows for Solana. The popular Layer-1 network has suffered multiple outages in recent months and several pumps, like the effects of the supersonic BONK meme coin pump.
A part of the Solana community is anticipating stabilized or significantly increased SOL prices. However, another community member, @lululongway, shared contrasting opinions about the current state of the Solana ecosystem, stating that they would be “on the sidelines” until further clarity for the network’s “economic outlook” is released.
On the Flipside
- It remains to be seen whether the recent developments on the network, wins from the community, and interest hike updates from the FOMC will result in sustainable growth for the Solana ecosystem.
- At the time of writing, the Solana community has yet to wholly reciprocate the founders’ optimism for the ecosystem’s future.
Why You Should Care
The Solana ecosystem has not been fully able to exit the post-FTX rollercoaster ride. While it remains at #11 by market capitalization, Solana’s significant price fluctuations perhaps address the rising concerns about the network’s robustness and viability in a decentralized future.
Read more about the news report released by the founders of Solana:
Solana (SOL) Founders Share “Optimistic” Vision for 2023
Read more about the supersonic BONK meme coin pump:
Solana up 24% – BONK Enthusiasm or Sustainable Growth?
