Interest rates remain stable: crypto expert warns of inflation risks!

Interest rates remain stable: crypto expert warns of inflation risks!

The US Federal Reserve announced its interest rate decision today: the key interest rate remains unchanged. This prompted CNBC crypto expert Ran Neuner to comment in depth on the decision. Markets and analysts had already expected such a stance; a rate cut was not factored into the expectations. The Fed said some uncertainty has been reduced, but it is too early to cut interest rates at this time. Interestingly, inflation expectations were raised from 2.6% to 3%, even though the current CPI data is at 2.4%.

Geopolitical tensions, particularly the conflict in Iran, could be seen as a possible cause for the Fed's rising inflation expectations. There is a divided opinion within the central bank: eight members expect an interest rate cut soon, while seven think this is unlikely. In addition, the Fed's GDP forecast was lowered to 1.4%. Amid these uncertainties, cryptocurrencies such as Bitcoin, Ethereum and Solana are holding relatively stable. Loud Wall Street Online The market capitalization of digital assets increased by 0.27% to $3.26 trillion.

Crypto market under pressure and new developments

The discussion about the economic framework for the crypto market also includes the passage of the GENIUS Act by the US Senate, which is seen as a positive step for the regulation of the crypto industry. Coinbase, a key distribution partner of Circle and the stablecoin USDC, is benefiting from these developments. The rise of stablecoins is considered bullish, but only larger infrastructure projects benefit from this trend.

Ran Neuner currently advises against investing in altcoins and recommends focusing on high-quality projects. In this context, Solana was also highlighted as a crypto project that aims to promote mainstream adoption with its new infrastructure called Solaxy. Solana itself offers a high transaction speed of over 1.2 million transactions per second and has a low delay of just 100 milliseconds. Initial testing for Solaxy is underway on the testnet, and a launch is planned following a successful presale that has already raised $54.44 million.

Solana economic innovations

With its platform, Solana shows how decentralized networks can democratically organize economic control mechanisms. The blockchain uses the Proof of History time verification method and thus achieves up to 50,000 transactions per second at minimal costs. The native token SOL is used not only for transaction fees but also for staking and governance.

Some inflation control proposals have been discussed in the community, such as SIMD-0228, which sought variable inflation to account for user participation in staking. However, this proposal was not accepted as it created uncertainty for investors. Another proposal – SIMD-0123 – however, has received approval to distribute additional transaction fees between validators and stakers to make incentives fairer.

The transfer volume of the stablecoin Tether (USDT) is increasingly shifting to Solana, which is due to its low transaction costs and high processing speed. Solana, founded in 2017 and with the mainnet launch in 2020, has established itself as a strong player in the blockchain world, and the price of a SOL token is currently around $115, with a market cap of $58.9 billion.

In summary, the current economic environment and regulatory developments represent both challenges and opportunities for the crypto market. The stability of cryptocurrencies can provide an attractive investment factor in uncertain times, while innovative approaches like Solana's open up new avenues in the digital finance world given current monetary policy.