Solana’s native token has emerged as a recent standout performer in the cryptocurrency market, climbing to a seven-month high above $105 before experiencing a slight pullback.
This significant rally, which saw the token surge from below $75, coincided with several key developments within the broader Solana ecosystem. Foremost among these was a crucial decision regarding the network’s future SOL issuance.
Validators ultimately approved SGP-0002, a proposal that doubles Solana’s annual disinflation rate from 15% to 30%. The vote was exceptionally close, with the measure passing with approximately 67% of the vote, just clearing the two-thirds supermajority required for approval.
Mert Mumtaz, CEO of Helius and a vocal proponent of the proposal, described the nail-biting conclusion, stating that his team made hundreds of calls in the final hours to secure the measure’s passage by a “literal hair.”
It is important to clarify that this proposal does not eliminate inflation entirely. Instead, it accelerates the annual decline of SOL’s existing inflation rate from 15% to 30%, while maintaining the network’s terminal inflation rate at 1.5%. Under the previous schedule, Solana was projected to reach this floor in the first half of 2032. The revised schedule halves this timeline, bringing the projected completion to the first half of 2029.
The trade-off for this accelerated disinflation is a projected faster decline in normal staking yields, as fewer new tokens will be distributed. This aspect was a primary point of contention for those who opposed the proposal.
ETF Milestone
In parallel, the Bitwise Solana Staking ETF (BSOL) achieved a significant milestone, becoming the first exchange-traded fund tracking the altcoin to surpass $1 billion in assets under management on Friday. Launched in October of last year, the ETF reached this target in approximately 10 months.
This achievement is particularly noteworthy given Solana’s overall price performance. As Bitwise President Teddy Fusaro highlighted, BSOL shares are currently trading about 40% below their listing price, and SOL itself remains 60% shy of its all-time high.
At the time of crossing the $1 billion threshold, BSOL held over 9.3 million SOL. The ETF aims to stake 100% of its holdings, with the current net staking reward rate standing at approximately 5.8%.
Whale Accumulation Continues
Data from Lookonchain earlier today indicated that two major Solana “whales” have continued to withdraw substantial holdings from exchanges following significant accumulation phases. One wallet, identified by the ending 3WzfuP, withdrew nearly $3.9 million in SOL from Kraken. Concurrently, another wallet, ending in 5p6zPz, transferred close to $30 million worth of the asset from Binance.
SOL’s price has seen considerable upward momentum recently, reaching a six-month peak above $105 on Friday before a broader market correction led to a slight dip. Despite this, the token remains comfortably above $100, having experienced a 42% surge over the past month. Some analysts are optimistic about further gains, with price predictions ranging from $150 to $300.
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