Recent news suggests that Solana is seeing a rise in on-chain activity, specifically in light of recent price declines. What does this mean? It looks like many wallets are growing in number despite a SOL price drop to $126. Are investors taking it as a buying opportunity? Sounds like long-term holders are coming out of the woodwork.
And it seems to be validated by data from Santiment. The dodged the price drop in US dollars and appeared to be growing. Are investors confident in Solana?
Is Solana's Disinflation Proposal Contributing to this Activity?
The disinflation proposal may be playing a role. It proposes to double the current disinflation rate from -15% to -30%, which further reduces the available SOL token supply to be used at a greater rate.
It is unclear if this is a move aimed at attracting institutional interest. Is it enough to stop the price decline and establish a stronger SOL asset?
What Can Startups Learn from Solana’s Growth?
Fintech startups can learn from this. There are several ideas:
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Stablecoin Invoicing for SMBs: Startups could enter the space by creating invoicing platforms for small and medium-sized businesses to receive payments in stablecoins.
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Crypto Payroll Solutions: Another idea involves payroll solutions for companies to pay employees in stablecoins, especially beneficial for remote teams.
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Blockchain Payment Platforms: Startups can also think about blockchain payment solutions that allow for efficient transactions.
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Crypto Banking for Startups: It may be time for startups to consider creating banking solutions to allow for lending, borrowing, and staking services.
Are Investors Shifting Towards Long-Term Holding Strategies?
On-chain data indicates that long-term holders are accumulating, seeing the price as a good point to buy.
It seems that while institutional investors are still on the increase, retail investors are out of it. Is it the case that sophisticated investors are treating this as a long-term investment?
How Does this Impact Crypto-Friendly SMEs in Europe?
For crypto-friendly SMEs in Europe, there are opportunities and challenges. There are opportunities for liquidity inflows and increasing institutional interest.
But then you have to stay compliant with the evolving EU regulations. Is there going to be increasing demand for stablecoins?
