Solana's native token reached a seven-month high above $105 this week, rebounding from under $75 amid several significant developments in the Solana ecosystem.
Network Disinflation Rate Doubled
Solana validators approved a governance proposal, SGP-0002, that doubles the network's annual disinflation rate from 15% to 30%. The measure passed with approximately 67% support, barely exceeding the two-thirds supermajority required for approval.
The change does not eliminate inflation but accelerates the pace at which SOL's inflation rate declines annually. The network's terminal inflation rate remains unchanged at 1.5%. Under the new schedule, Solana is expected to reach that floor by the first half of 2029, compared to the first half of 2032 under the previous timeline.
A key trade-off accompanies the change: staking yields are projected to fall faster as the network distributes fewer new tokens annually.
Solana Staking ETF Surpasses $1 Billion
The Bitwise Solana Staking ETF (BSOL) became the first exchange-traded fund tracking Solana to exceed $1 billion in assets under management. Launched in October, the ETF reached the milestone in approximately 10 months.
BSOL held more than 9.3 million SOL at the milestone, with a net staking reward rate of approximately 5.8%. The ETF targets staking 100% of its holdings.
Large Holders Accumulate Holdings
Recent data showed major Solana whale addresses withdrawing significant amounts from exchanges. One wallet transferred nearly $3.9 million worth of SOL from Kraken, while another moved approximately $30 million worth from Binance, continuing patterns of accumulation and off-exchange transfers.
SOL's price reached over $105 before market corrections pulled it lower, though the token remained above $100 following a 42% monthly gain.
