Following an outstanding month in January, the Solana token is beginning February a tad slower than its predecessor month.
Following a terrible 2022, Solana grew by over 140% in January and ranked among the top-earning cryptocurrencies of the month. Also, the token has since returned to the top-10 list of most valuable cryptocurrencies.
SOL started off the month reaching $25.88 on February 2. That price marked Solana’s second-highest peak since its January rally and was largely influenced by the Federal Reserve’s announcement of a new interest rate raise of 0.25%.
However, this past week Solana lost some steam and has since decreased by over 12% in value.
The asset, like the majority of other major cryptocurrencies, is spending February’s first weeks on hold, waiting for the American government to report on the state of the country’s inflation for 2023.
The asset is currently trading at $22.97 and is on a 2.30% decrease in the previous 24 hours, according to CoinMarketCap.
What to Expect For Solana in February
On this Tuesday, February 7, Jerome Powell will concede an exclusive interview with David Rubenstein at the Economic Club of Washington, D.C.
During that interview, the chairman will most likely hint at what is to come by the Fed regarding inflation, and if the country is on the verge of a recession or not.
In addition, the following week will have the Consumer Price Index report for the month of January. Riskier assets investors are awaiting a confirmation that the reoccurring interest rate raises by the Fed are finally beginning to control inflation levels.
If confirmed, the crypto market will most likely go back to its growth during the last month. For Solana, this would mean continuing on the upward trend that resulted in over 140% growth.
Lowering inflation is helpful for Solana as it helps to maintain the value of its currency and increase purchasing power for potential investors. A stable inflation rate also attracts investment and promotes economic growth, contributing to the overall stability and success of the Solana ecosystem.