Solana Network Shows 124% Growth Since Early September

The Solana network has grown by 124% since the beginning of September, according to Santiment. The analytics company associates this with a long-term bullish outlook: today, the network adds about 1.71 million new wallets daily. Santiment also notes that the number of daily active addresses in Solana has increased by 58% over the same period, reaching approximately 4.27 million unique wallets. Analysts believe that networks with a large number of users have historically supported higher market capitalization.

Institutional demand, however, is moving in the opposite direction. Spot Solana ETFs lost $17.7 million over three consecutive sessions, and SOL decreased by 1.6% over the past week. ETF flows indicate a weakening interest. Spot Solana ETFs attracted $188.2 million in the week ending September 25, marking the second-largest weekly inflow since launch, according to SoSoValue. Net inflows then decreased to $2.4 million the following week, and on October 5, 6, and 7, the funds recorded outflows. The outflows are not limited to Solana: spot Ethereum ETFs recorded outflows for six consecutive days through October 6.

Macroeconomic factors add pressure. The Federal Reserve released the minutes of the September meeting: most officials considered another rate hike likely by the end of the year. Meanwhile, traders reduced bets on an October hike, as reported by BeInCrypto. Officials also noted that inflation risks are tilted upwards, with some stating they have recently increased. The next test is the US inflation data on October 14, ahead of the Federal Reserve's decision on October 28.