Solana touches seven-month high as governance vote and ETF milestone converge
Regulation & Gov ·
SOL climbed past $105 this week as a narrowly passed supply-schedule change, a billion-dollar ETF threshold, and exchange outflows from large holders pointed to strengthening bullish sentiment.
Solana's token price pushed above $105, a level not seen in seven months, as a cluster of ecosystem developments landed in close succession. The move followed the passage of a validator proposal that doubles the network's annual disinflation rate from 15% to 30%, a measure that squeaked through with roughly a two-thirds supermajority in what has been described as a dramatic, last-minute finish, per Decrypt and CoinDesk.
The governance change, filed as proposal SGP-0002 and documented on Solana's governance portal, does not remove inflation altogether. It accelerates how quickly the current issuance rate winds down, shortening the runway to the network's terminal inflation floor. That shift means staking rewards are expected to compress faster than under the prior schedule, a trade-off that fueled opposition even as the measure ultimately cleared the required threshold.
Separately, the Bitwise Solana Staking ETF became the first SOL-tracking fund to cross $1 billion in assets under management, a threshold reached even though the token remains 60% below its all-time high. The fund's climb to that milestone, detailed by CryptoPotato, underscores institutional demand for staked SOL exposure independent of the asset's price recovery.
Onchain activity has added another bullish signal: large holders have been pulling SOL off exchanges, a pattern typically read as accumulation rather than preparation to sell. Coverage of the vote also circulated internationally, including a report from WuBlockchain, while a further breakdown of the governance outcome was shared on X. Analysts cited in the cluster have floated price targets ranging from $150 to $300, though such projections remain speculative rather than confirmed outcomes.
What remains unresolved is how the faster disinflation schedule will affect validator economics and staking participation as yields decline sooner than previously modeled, and whether whale withdrawals translate into sustained price support or prove to be a short-term positioning shift. The proposal's narrow margin of passage, with a pivotal last-minute validator switch reportedly deciding the result, also leaves open questions about the durability of consensus behind further protocol-level changes.