Solana Rallies Near $140 on Strong ETF Inflows, Tokenomics Upgrade

Solana’s SOL Token Surges Near $140 Amid Strong ETF Inflows and Proposed Protocol Changes to Accelerate Inflation Reduction

  • Solana’s SOL token price rose sharply on November 24, nearing $140.
  • The overall cryptocurrency market increased to about $3.06 trillion, up 8.5% since November 21.
  • Solana-based exchange-traded funds (ETFs) have attracted significant daily inflows exceeding $20 million recently.
  • A proposal called SIMD-0411 aims to reduce Solana’s inflation rate by removing tokens from future release schedules.
  • The protocol change could shorten the timeframe to reach Solana’s target inflation rate from over six years to just over three years.

On Monday, November 24, the price of Solana’s native cryptocurrency token, SOL, climbed sharply to approximately $139.85 amid a broader rally in digital currencies. This increase happened as the total cryptocurrency market value rose to nearly $3.06 trillion, marking an 8.5% gain since November 21.

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According to Coinbase data from TradingView, SOL broke through short-term resistance levels after weeks of consolidation, generating renewed buying interest. The overall market growth figures come from CoinMarketCap.

Analysts highlighted the role of continued capital flowing into Solana-based exchange-traded funds (ETFs). The market has seen daily inflows above $20 million over the past 19 days, signaling strong institutional interest. The YouTuber known as Wendy O stated, “Right now, the entire crypto market seems to be regaining momentum,” and noted the inflow numbers as a sign of Solana’s strength.

Independent crypto analyst Armando Aguilar mentioned that these ETF inflows have partly driven SOL’s upward price movement despite broader market sell-offs. He also noted a growing competition among ETF providers, including 21Shares, Fidelity, and Bitwise, to launch Solana-focused investment products.

Aguilar further explained the potential impact of SIMD-0411, a proposed change to Solana’s protocol aimed at its token economics. This change would double Solana’s disinflation rate from 15% to 30%, potentially removing about 22 million tokens from the emission schedule. This reduction could help the network reach a long-term inflation rate of 1.5% in just over three years instead of more than six years.

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He remarked that this proposal has been positively received by investors. Aguilar stated, “Given the law of supply and demand – SOL’s price has momentum to recover in the short term and given its network activity, integrations and cross-chain access, investors could see good price appreciation on the blue-chip token.”

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