3 Major Solana (SOL) Developments You Should Know About
Solana’s native token became one of the recent top performers in the crypto market, surging to a new seven-month high at over $105 before it was finally halted and retraced slightly.
This substantial rally from under $75 came amid several major developments within the broader Solana ecosystem. Perhaps the most important came from the network itself.
Issuance Changed
The network finally succeeded in reducing future SOL issuance. Although the decision could hardly have been any closer, validators approved SGP-0002, which endorses doubling Solana’s annual disinflation rate from 15% to 30%. The proposal finished with approximately 67%, barely clearing the two-thirds supermajority required for approval.
Helius CEO Mert Mumtaz, one of the most prominent and vocal supporters, summed up the dramatic finish by saying his team made hundreds of calls in the final hours and ultimately passed the measure by a “literal hair.”
It’s worth noting that the proposal does not eliminate inflation. It doubles the speed at which SOL’s existing inflation rate declines each year – from 15% to 30%, while leaving the network’s terminal inflation rate unchanged at 1.5%. Under the current schedule, Solana was expected to reach that floor in the first half of 2032. The new schedule reduces that time by half, bringing it to H1 of 2029.
The trade-off is that normal staking yields are projected to fall faster as fewer new tokens are distributed, which is where most of the arguments against it come from.
SOL ETF Breaks $1 Billion Milestone
The Bitwise Solana Staking ETF (BSOL) became the first exchange-traded fund tracking the altcoin to surpass the coveted $1 billion target in assets under management on Friday. It saw the light of day last October, meaning that it took around 10 months to do so.
What’s particularly interesting here is that this achievement occurred despite SOL’s broader price performance. As Bitwise President Teddy Fusaro pointed out, BSOL shares remain about 40% below their listing prices, while SOL itself is still 60% away from its ATH.
BSOL held more than 9.3 million SOL when it crossed the $1 billion mark. It targets staking 100% of its holdings, while the net staking reward rate currently stands at around 5.8%.
Whales Go Big
Lookonchain data from earlier today showed that two major Solana whales have continued to withdraw major holdings from exchanges after completing significant accumulations. A wallet ending with 3WzfuP withdrew almost $3.9 million in SOL from Kraken, while another one, ending with 5p6zPz, transferred nearly $30 million worth of the asset from Binance.
SOL’s price has been on the move lately, surging to a six-month peak at over $105 on Friday before the broader market’s correction drove it south. Nevertheless, it remains well above $100 after a 42% monthly surge. Some analysts believe more gains are around the corner, with predictions ranging from $150 to $300.