Analyst Predicts Solana Strengthening as Inflation Reduces and ETF Possible
- Proposal for drastic reduction of Solana inflation.
- Possible ETF approval would increase demand for SOL.
- Price appreciation may outpace staking rewards.
Thursday, March 13, 2025, At the time of publication, the price of SOL was quoted at US$ 122 with a drop of 2% in the last 24 hours.
The Solana network, known for its efficiency and fast transaction execution, could be on the verge of a significant valuation due to imminent changes in its economic structure and potential regulatory developments. According to a influences Cryptocurrency analyst known as InvestAnswers, Solana (SOL) presents promising prospects, especially with the proposed drastic reduction in the currency's inflation rate.
InvestAnswers, which has over half a million subscribers on YouTube, recently highlighted that the proposed adjustment of Solana’s inflation from approximately 4,8% to around 0,86% by the end of epoch 755 could significantly strengthen Solana’s position in the cryptocurrency market. The anticipated reduction brings Solana almost directly in line with the inflation rate of Bitcoin, which is known for its economic robustness.
“The proposed reduction in Solana’s inflation rate is monumental. If approved, and there is a real possibility that it will be, Solana could emerge as one of the most robust layer-one assets on the blockchain,” the analyst commented. Epoch 755, a pivotal period for the network’s governance, could mark a game-changer for Solana, potentially bringing a positive impact on its market value.
At the same time, the analyst points to an even more optimistic scenario with the possibility of approval of an ETF (exchange-traded fund) for Solana by the SEC, the US Securities and Exchange Commission. The expectation is that such an event will catalyze a significantly greater demand for the currency, potentially causing a “crazy bomb” in the price of SOL.
“And my question is, what happens if a Solana ETF comes? I mean, there’s a lot at stake. There’s very little on the exchanges. We could see a crazy pump,” InvestAnswers projected on his channel.
Furthermore, regarding concerns about staking rewards in a scenario of reduced inflation, InvestAnswers reassures its followers by highlighting that the potential gain in price appreciation will outweigh the reduced staking rewards. “Think about price appreciation. It is more advantageous to see the asset double in value than to just reap small annual rewards,” it explained.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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