Is Solana a Millionaire-Maker Cryptocurrency?
The cryptocurrency industry has been treading water lately as election-year hype fades and investors take profits to pivot to new hype cycles like generative AI and quantum computing. Solana (CRYPTO: SOL) has been part of the trend. With a current price of about $143, the digital asset still hovers around the same level it was in March 2024.
However, unlike Solana's previous big rally in 2021, this time it hasn't quickly given back its gains, which suggests its investors are shifting away from short-term speculation to a buy-and-hold strategy. Over the long term, the macroeconomic and regulatory outlook for the cryptocurrency industry looks favorable, and Solana can stand out because of its technical advantages over rival blockchain networks.
There are several macroeconomic tailwinds for cryptocurrency, but falling interest rates are chief among them. The post-COVID-19 rally in 2021 suggests the industry benefits from looser monetary policy, which makes borrowing cheaper and encourages investors to pivot away from lower-yielding assets (like Treasury bonds) in favor of higher-returning, but riskier assets. The U.S. Federal Reserve started raising interest rates in early 2022 and started lowering them in late 2024.
Source Fool.com
