Solana’s Inflation Adjustment Proposal Rejected

Multicoin Capital co-founder Tushar Jain stated that despite the proposal failing, this was an important step for the Solana ecosystem and its governance process.

The vote saw participation from 910 validators, representing 74% of the staked supply. However, only 43.6% voted in favor, while 27.4% voted against and 3.3% abstained. The proposal required 66.67% approval to pass but received only 61.4%.

Solana’s X team emphasized that the voter turnout was higher than every U.S. presidential election in the last 100 years.

What Was the Proposal’s Goal?

SIMD-228 aimed to transition Solana’s inflation system from a fixed schedule to a dynamic, market-based model. The new system would adjust inflation rates based on staking participation to prevent excessive token issuance.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Currently, Solana‘s annual inflation rate starts at 8%, decreasing by 15% per year until it reaches 1.5%. However, the new model could have reduced inflation by up to 80%. As of now, Solana’s inflation rate stands at 4.66%, with only 3% of the total supply staked.

High inflation can increase selling pressure, lower SOL’s price, and discourage network activity. The proposed system aimed to stabilize the network by adjusting inflation rates based on staking participation while encouraging more active use of SOL in DeFi.

How Did This Affect SOL’s Price?

The rejection of the proposal did not trigger significant volatility in SOL’s price. SOL dropped 1.5% on the day, falling just below $125. However, following the memecoin bubble burst, SOL has lost nearly 60% of its value over the past two months. Additionally, Solana’s network revenue has declined by over 90% due to reduced memecoin minting and trading activity.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Solana’s Inflation Cut Proposal Fails to Pass! appeared first on Coin Engineer.

Solana dropped to a four-week low on June 11, testing the $145 support level. In four days, SOL experienced a sharp decline of 15.8%, outperforming the 10% decline in total market capitalization. However, macroeconomic instability may have created a buying opportunity for SOL, based on two key indicators.

Effect of Macroeconomic Events on SOL Price

Investors are worried that the stock market may correct itself due to mixed economic signals and that the US Federal Reserve (Fed) may postpone interest rate cuts. The CME FedWatch tool shows traders increasing the odds of interest rates staying the same through September from 39% to 48%. After the S&P 500 index reached a record high on June 7, investors are awaiting Fed Chairman Jerome Powell’s speech on June 12.

Stuart Kaiser, Citigroup’s head of U.S. equity trading strategy, said a rise in the Consumer Price Index (CPI) of more than 0.4% from the previous month could trigger a broad market selloff, with the S&P 500 falling 1.5% to 2%. 5 states that it may fall. Kaiser also stated that the S&P 500 could experience its biggest single-day move since March 2023. US inflation data is awaited with great attention ahead of the Fed’s interest rate decision.

SOL Investors’ ETF Hopes

SOL investors are hopeful about the possibility of an exchange-traded fund (ETF) listing in the US. Regulators have not yet supported cryptocurrencies other than Bitcoin and Ethereum. Brian Kelly, founder and CEO of BKCM Digital Asset Fund, sees SOL as a strong ETF candidate after Bitwise chief investment officer Matt Hougan noted that Solana’s real-world applications could attract institutional investments.

SOL’s recent poor performance can also be attributed to some issues in the network, particularly those related to maximum extractable value (MEV). Validators on the Solana network were discovered to be profiting at the expense of retail investors by manipulating prices. Solana Foundation has discouraged such harmful actions by removing these validators from its delegation program.

Solana On-Chain and Derivative Measurements Give Positive Signals

Notably, demand for leverage in SOL futures was unaffected by worsening market conditions. Perpetual futures contain an embedded ratio that, when positive, indicates increased leverage demand for long positions. A negative funding ratio indicates the need for more leverage for short positions.

Data shows that SOL’s funding rate has held steady at 0.01% over eight hours since June 8, accounting for around 0.2% per week. Despite the 15% decline in the SOL price, the stability of these rates is an indicator of market resilience. If the bulls were overleveraged, there would be a significant increase in the funding rate, but that is not the case right now.

Chain data on the Solana network shows an increase in the number of users and transaction volume. While some analysts think Solana’s low fees may encourage data manipulation, this is not unique to Solana and also affects competing platforms such as Ethereum’s layer-2 solutions and BNB Chain.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Can SOL Reach $170? Two Indicators Screams ‘Buy’ appeared first on Coin Engineer.

Solana Price Analysis

Solana (SOL) is currently trading at $180.74, with a market capitalization of $449.155 billion. SOL is up 1.61% in the past 24 hours and 25.64% in the past 7 days.

Solana has been on a strong upward trend in recent times and could be a good investment opportunity.

Solana Price Prediction 2024

According to technical analysis, Solana’s minimum price in 2024 is expected to be $108.68 and its maximum price is expected to be $154. The average trading price is expected to be around $199.32.

Backpack (BP) Brings Good News to Early Users

One of the notable projects in the crypto ecosystem, Backpack, has officially entered its token

23
Mar

What is Ant.FUN (ANB)?

One of the projects that has recently attracted attention in the crypto market is Ant.FUN

16
Mar

Strategy’s Massive Bitcoin Purchase Moved the Market!

Institutional investment activity continues to attract attention in the cryptocurrency market. One of the companies

16
Mar

Fetch Price Analysis

Fetch.ai (FET) is currently trading at $0.26, with a market capitalization of $1.24 billion. FET is down 0.24% in the past 24 hours and 10.64% in the past 7 days.

Fetch.ai has been on a downward trend in recent times, but it could be due for a rebound.

Fetch Price Prediction 2024

According to short-term analysis, Fetch.ai’s average price in July 2024 is expected to be $0.545 and its maximum price is expected to be $0.583.

According to long-term analysis, Fetch.ai’s average price in November 2024 is expected to be $0.552 and its maximum price is expected to be $0.591.

Overall, both Solana and Fetch have the potential to be good investments in 2024. However, it is important to do your own research before investing in any cryptocurrency.

The post Solana and Fetch Price Analysis: Bullish or Bearish? appeared first on Coin Engineer.