U.S. Core CPI and Crypto Market Reaction

The U.S. Core CPI came in at 3.1% year-over-year, lower than the estimated 3.2%. This lower-than-expected inflation has prompted a positive response in the crypto markets, with Solana momentarily surpassing $130.

Currently, Solana is trading at $128, indicating a potential bullish recovery. Could this reversal lead to a price surge towards $170? Let’s explore.

Solana Price Analysis

In the daily chart, the SOL price trend shows a decline, reaching a low of $112. However, a price increase of 6% on March 11 has set the stage for a bullish momentum for Solana.

Solana Price Chart

With a 1.94% intraday gain extending the bullish recovery, Solana enters a fifth consecutive day of red candles. A potential V-shaped reversal suggests a bounce back from the S-1 pivot support level of $104. The recovery hints at a possible rise to $145 for the 20-day EMA.

Solana Surpasses Ethereum in 24-hour Revenue

In light of the short-term recovery and decreasing U.S. inflation, Solana has surpassed Ethereum in 24-hour revenue. According to SolanaFloor, the Solana network recorded $442,000 in 24-hour revenue.

> BREAKING: @Solana surpasses Ethereum in 24-hour revenue. pic.twitter.com/ku7qE4sL7Y
> — SolanaFloor (@SolanaFloor) March 12, 2025

This is a significant increase over Ethereum, which recorded $419,000. Maker follows in third place with a 24-hour revenue of $391,000.

SIMD-228 Proposal Nears Approval

As noted in our last article, the SIMD-228 protocol proposal in Solana aims to reduce SOL inflation by nearly 80%. Recent voting status shows it passing with 67.97% approval, exceeding the necessary 67% threshold. However, 56% of stakers have yet to vote, with voting ongoing until the end of Epoch 755.

Solana Derivatives Indicate Rising Open Interest

As Solana finds itself at a critical juncture, the derivatives market has seen open interest surge to $3.7 billion. However, the funding rate remains negative at 0.0065%, indicating sellers are willing to pay a premium to maintain short positions. The long-to-short ratio over the last 24 hours stands at 0.9767, reflecting a slight increase in selling accounts. Liquidations have also risen to $13.12 million, with short liquidations at $7.54 million and long liquidations at $5.58 million.