Solana Surges Over 16%, Reaching Its Highest Point Since Late August
Since the U.S. Federal Reserve announced its 50-basis-point interest rate cut on the 18th of September, Solana (SOL) has experienced a significant price surge, marking the cryptocurrency's strongest performance in several weeks.
At the time of writing, the SOL token, native to the Solana blockchain, has managed to cross the €136 mark. Considering SOL was hovering around the €117 mark just before the Federal Reserve announced its rate cut, this is an increase of more than 16%.
Federal Reserve Rate Cut Fuels Solana’s Rally
Market analysts attribute Solana’s price jump to the Federal Open Market Committee’s recent decision to lower the target range for the federal funds rate by 50 basis points. This move, which affects borrowing costs, has been widely discussed in recent years.
For the first time in four years, Federal Reserve officials have reduced this benchmark rate, creating optimism across financial markets.
Solana's Growing Momentum
That being said, it’s also important to note that the Solana ecosystem has experienced some positive developments itself. Of course, investor interest is a strong driver, and promising Solana-based projects like Helius, recently receiving funding to the tune of €20.60 million help further push the SOL price.
In other Solana news, two Solana exchange-traded funds (ETFs) have been approved by Brazilian regulators which in turn reflects positively on the Solana ecosystem and price.
Furthermore, Solana is launching a new smartphone which the team announced on Wednesday the 18th of September at Token 2049 in Singapore. Sales of the "Seeker" will start in 2025 and will cost $450. According to data, 140,000 units have already been pre-ordered in 57 countries.
These events help strengthen and boost the momentum of the Solana ecosystem.
Please be aware that this content is for information and entertainment purposes only. It does not serve as investment advice, and previous performance is not an indicator of future performance. Investing in crypto involves risk of loss. Always do your own research.
