Solana Rebounds 6% After Fed Shock
Solana's price surged nearly 6% in the past 24 hours after a sharp decline following the Federal Reserve's first interest-rate increase since 2023. The token initially fell to approximately $96, but buyers subsequently entered the market and pushed it back above $100 within 48 hours.
The rally comes as Solana's adoption rate continues to soar. Galaxy, a Nasdaq-listed firm with over $7B in assets under management and stake, announced that it now curates two lending vaults on Kamino, one in USDC and one in USDT.
Injective's INJ token going live on the network and Project Harmonia linking Allfunds' distribution network to tokenized funds built on Solana have also added to activity around Solana. SEC Chair Paul Atkins supported the blockchain by saying the agency would act within its existing authority to provide certainty for investors and technology entrepreneurs.
Atkins' comments are potentially positive for Solana because its blockchain hosts a large ecosystem of decentralized finance protocols, trading platforms, and tokenized assets. However, additional tightening could strengthen the US dollar and reduce liquidity available for speculative assets, which is currently assigned a 41% probability in markets.