Solana has achieved a significant milestone by overtaking Base in x402 payment activity for the first time, according to data from Artemis. The network handled the majority of x402 transactions and volume in a mammoth jump during the latest period. This payment protocol enables AI agents and apps to use stablecoins for online services, positioning Solana as a leader in the AI economy. The development represents a notable shift from months of Base dominating the x402 space, with Solana now leading in both transaction count and volume for this critical payment infrastructure.
Solana demonstrated exceptional performance in August, ranking first in app revenue at $143 million and accounting for 38% of total on-chain app earnings, as reported by AMBCrypto. The network outpaced competitors including Ethereum, Base, and Hyperliquid L1 platforms. This revenue leadership, combined with the x402 activity surge, has helped Solana maintain its position despite ongoing governance debates about inflation reduction proposals.
SOL Strategies CEO Michael Hubbard has criticized Solana's decision to accelerate its inflation reduction timeline, arguing the current 4% to 4.5% inflation rate does not justify the proposed changes. According to reports from crypto.news, Hubbard told crypto.news that the inflation change was pushed through before its effects on network participants were fully understood. The SGP-0002 proposal, known as Double Disinflation, would increase Solana's annual disinflation rate from 15% to 30%, reducing the estimated time needed to reach the terminal inflation rate of 1.5% from 5.7 years to 2.8 years. The proposal would cut an estimated 18.9 million SOL from projected issuance over six years, equivalent to about 2.6% of the supply under the existing schedule.
The SGP-0002 proposal received 67.001% support, clearing the 66.67% approval requirement by just 0.33 percentage points. As reported by crypto.news, 25.16% voted against the measure, while 7.84% abstained from the vote. The proposal could remove an estimated 18.9 million SOL from projected issuance over six years, equivalent to about 2.6% of the supply under the existing schedule. The vote involved 1,326 validators with record participation at 60.7% of eligible stake, demonstrating significant community engagement in the governance process.
SOL has demonstrated resilience following its recovery from the $70s to above $100 in late August, currently consolidating near $104. According to AMBCrypto, RSI was above neutral with buyers still having control, though the indicator has slowed recently. The CMF remained positive, indicating continued buying interest. The price recovery coincides with Solana's strong performance in AI-related activities and app revenue generation. However, market analysts note that supply growth alone doesn't drive price movements, with demand remaining the primary factor for future price appreciation.
