Solana’s supply shock: Will cutting inflation by 80% fuel SOL’s next rally?

Solana’s supply shock: Will cutting inflation by 80% fuel SOL's next rally?

Table of Contents

  • Solana’s proposal, which aims to reduce inflation by up to 80 %, has reached 71.85 % in favor.
  • Will Sol make more contraction over time?

Solana [SOL] In the depths of its quieter sessions, it slides from its highest level ever to 213 dollars to 213 dollars at the time of the press.

To counter this, the developers make the SIMD-228 suggestion, which seeks to reduce inflation by up to 80 %. With 71.85 % of the votes in favor, an offer It has already arrived in the quorum.

Successful implementation may lead to the tightening of the SOL dynamics. But will this be enough to reverse the market morale?

Solana shrinkage model under focus

Tokenomics Solana follows a semi -fading model, as part of the transaction fees is constantly burned, gradually reducing the total display.

This mechanism helps to balance inflation and supports long -term prices.

However, Solana transactions fees decreased to the lowest level in six months, according to Ambrypto reportThis indicates a significant decrease in the demand for the chain.

Solana fee

Source: Artemis Station

Since Solana’s contraction pressure is directly related to the network activity, low transaction sizes mean less burning – weakening its ability to compensate for inflation.

To address this, the SIMD-228 suggestion aims to reduce Sol inflation by cutting bonuses. It is the basic method new symbols Sol enters blood circulation.

Currently, the new Sol is released at an annual rate of 6.8 %, mainly through Staking bonuses For those who are stained.

SIMD-228 suggests this rate reduction by up to 80 %. In response, it would significantly reduce the number of new symbols that enter the blood circulation.

Prices and market morale

At the time of the press, the Solana’s trading offer is 509.38 million Sol, with a trading price at $ 124.78.

This translates into the market value of $ 63.56 billion, which represents a sharp decrease from its highest level (ATH) during the middle of January.

Soul SoulSoul Soul

Source: CoinmarketCap

Solana’s evaluation is significantly due to the decrease in the activity on the chain and the investor’s mindset.

The Sol/BTC pair has decreased to its lowest level for two years, indicating that merchants still see that Sol as a high and high -voltage origin.

Sol/btc priceSol/btc price

Source: Coinalyze (Sol/BTC)

With the presence of transactions fees at the lowest level in six months, fewer distinctive Sol symbols are burned, weakening its contraction model and adding pressure to the price.

If SIMD-228 succeeds in reducing inflation while maintaining authentication, it may enhance confidence, improve the dynamics of the show, and pave the way for the next Sol gathering.

However, adoption and network use will remain very important in determining its real influence.

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