Solana Price is under immeasurable sales pressure, falling below $130. Is there any suggestion to reduce Sol Inflation Sail?
sOrana has not escaped the brutal recession of the crypto market. There are very few coins Outperform With exceptions like the Pi Network, we continue to ride the hype of MainNet's launch.
Along with the other top 10 altcoins, Solana, Ethereum, Tron, Cardano and even Bitcoin, we reduced the double-digit percentage Past trading weeks. This sale slowed down activity across the blockchain.
For example, in Solana, revenue from smart contract deployments and transfers is declining. This tends to continue as Sol prices drop from their all-time highs.
Selling: Meme Coin Mania over?
Solana is currently below $130, down nearly 55% from its peak of around $295 in January 2025. Prices have temporarily skyrocketed to that record, surpassing the 2021 high after Donald Trump launched the meme coin. But since then, the coin has been on a downward slide.
(solusdt)
The drop partially reflects the unexpected and unexpected plunge in Bitcoin, between $100,000 and under $90,000, and settles at a spot rate of around $83,500. What makes this worse is the frenzy of declining meme coins.
Pump.Fun metrics have been shown to put fewer tokens graduating on Raydium's list, fewer new coin launches, lower demand for SOL, and put pressure on prices. It's getting worse for some of the best meme coins as demand for Solana slows down.
The broader market capitalization, reflecting this bearish mood, slid from 8.8% to $2.75 trillion.
Among these challenges, there are some faint hope. SIMD-0228 Proposal It provides a potential lifeline for the Sol Holder to reduce the circulation of Solana over time.
SIMD-0228: SOL (SOL) Inflation Reduction Plan
SIMD-0228, introduced by Multicoin Capital executives Tushar Jain and Vishal Kankani, is about to shift Solana from a fixed inflation schedule to a dynamic, market-driven model.
today @kankanivishal And I have released Solana improvement proposals to reduce Solana's inflation.
As Solana matures, stakers gain more and more Sol through MEV-like mechanisms. This revenue stream is intended to reduce the network's reliance on historic exclusive token emissions and attract interest…
– Tushar Jain (@tusharjain_) January 16, 2025
Since its launch in 2020, Solana has followed a predictable inflation path. Starting at 8%, the rate will decrease by 15% per year, aiming for a long-term rate of 1.5%.
Today, the inflation rate is 4.7%, with most new Sol reward validators and stakers. this Increased circulation supply to 498 million now.
(sauce)
If approved by the vote in early March, SIMD-0228 will link the issuance of SOL to participation in the bet, with a 50% staking rate.
Unlike Ethereum, Tron, or BNB chains, there is no direct token burning.
Instead, If staking exceeds 50%, issuance will be 0%. Conversely, if Staking is below 50%, and issuance increases to promote staining.
this Inflation can be reduced from 4.7% to less than 1%. This is a sudden cut that favors holders over validators acquired from both Block Rewards and MEV, for example from Jito Tips. By suppressing future supply, SIMD-0228 has become rarer and has been able to strengthen its price as it has an impact the Supply and demand dynamics.
At Press Time, Sol is locked in a bearish breakout with $130 and resistance at $175. If the price falls below $130 before the March vote, and before FTX Estate drops 11.2 million SOL on March 1, SOL could crash to $100 with a continuing bear trend.
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Solana is below $130, will this proposal be approved?
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Solana is falling fast. At press, Sol is under $130
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Inflation is declining, but does this proposal nod from the community?
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If inflation is low, will Sol Bounce be higher in March?
There post plans to reduce inflation in Solana (SOL): Will it sail? It first appeared in 99 Bitcoin.
