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Solana (SOL) may never reach $1,000 due to supply growth
The post Solana (SOL) may never reach $1,000 due to supply growth appeared on BitcoinEthereumNews.com. Solana (SOL) may remain pressured by relatively high inflation. The lack of a clear supply cap and the ongoing unlocks can continue to put pressure on SOL even without negative market conditions. Solana (SOL) is the most inflationary among blue chip tokens, with yearly inflation at more than 5%. The inflation is built into the protocol and is needed to motivate validators to produce blocks. Part of the inflation is offset by locking SOL for staking, which at least takes the tokens off the market. But SOL investors are warning that Solana has always posted ties to venture capital backers, and may be pressured by ongoing selling of significant positions. Some of the SOL price predictions see the asset rise as high as $1,000 to rival Ethereum (ETH). Solana still has close to four times the supply of ETH, but its network is still catching up in terms of daily activity and value locked. However, some see the rally to $1,000 as an impossible feat, as Solana’s backers are more willing to sell than to hold for the long term. Retail SOL buyers may be incentivized to stake their tokens, but fears of VC selling are still mentioned as the biggest factor for Solana. Still don’t understand people YOLOing into $SOL at the top as supply continues to increase and VCs continue to dump on them. Read the room bruh, find a ???? that has a bright future but hasn’t had its run yet. pic.twitter.com/6ngAFd7fBh — Alts Anonymous ???? ???? (@Alts_Anonymous) August 4, 2024 The Solana network raised suspicion due to its support from the FTX exchange, which held a large part of the token’s supply. SOL survived the crash of FTX, though never recovering its peak levels close to $260. The FTX influence may not be over – there…
The post Solana (SOL) may never reach $1,000 due to supply growth appeared on BitcoinEthereumNews.com.
Solana (SOL) may remain pressured by relatively high inflation. The lack of a clear supply cap and the ongoing unlocks can continue to put pressure on SOL even without negative market conditions. Solana (SOL) is the most inflationary among blue chip tokens, with yearly inflation at more than 5%. The inflation is built into the protocol and is needed to motivate validators to produce blocks. Part of the inflation is offset by locking SOL for staking, which at least takes the tokens off the market. But SOL investors are warning that Solana has always posted ties to venture capital backers, and may be pressured by ongoing selling of significant positions. Some of the SOL price predictions see the asset rise as high as $1,000 to rival Ethereum (ETH). Solana still has close to four times the supply of ETH, but its network is still catching up in terms of daily activity and value locked. However, some see the rally to $1,000 as an impossible feat, as Solana’s backers are more willing to sell than to hold for the long term. Retail SOL buyers may be incentivized to stake their tokens, but fears of VC selling are still mentioned as the biggest factor for Solana. Still don’t understand people YOLOing into $SOL at the top as supply continues to increase and VCs continue to dump on them. Read the room bruh, find a ???? that has a bright future but hasn’t had its run yet. pic.twitter.com/6ngAFd7fBh — Alts Anonymous ???? ???? (@Alts_Anonymous) August 4, 2024 The Solana network raised suspicion due to its support from the FTX exchange, which held a large part of the token’s supply. SOL survived the crash of FTX, though never recovering its peak levels close to $260. The FTX influence may not be over – there…
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