Solana price may be poised for a parabolic rally after Wall Street giant VanEck hailed a new proposal to reduce the annual SOL inflation rate to 1.5%. This proposal will commence voting on March 6, 2025, and if implemented, it could reduce Solana’s supply significantly and drive price growth. As the Solana community votes on the proposal, will it ignite a parabolic rally for SOL to a new ATH?
VanEck Says New Inflation Proposal Will Boost Solana Price Value
Solana price has been under bearish pressure due to FTX unlocks. However, VanEck believes that a new proposal could shift the market sentiment, In its recent monthly report, VanEck hailed the SIMD 0228 proposal whose vote is scheduled today. It noted that the proposal was the “most impactful” to Solana price as it would reduce the annual inflation rate from 4.7% to 1.5%. Per the asset manager,
“We believe lowering inflation is a worthy goal that strengthens Solana’s long-term sustainability. Maintaining a predictable and low inflation rate can support SOL’s value by reducing dilution and sell pressure.”
The head of digital assets research at VanEck, Matthew Sigel, had also supported the proposal, saying it could stabilize and strengthen Solana’s position in the crypto industry.
Despite the optimism, the upcoming upgrade has also received opposition. According to one member of the Solana community, this proposal would reduce the amount of Solana being staked and compromise network security.
Solana Technical Analysis – Is a New ATH in Sight?
If the Solana SIMD 0228 proposal passes the community vote, it could stir a parabolic rally for Solana price. At press time, SOL trades at $146 after a 3.3% rise in 24 hours.
According to analyst Crypto Rand, Solana price was forming a bull reversal on its daily chart. The altcoin was attempting to break from a descending trendline to confirm this reversal. Looking at past trends, a decisive breakout from this trendline has often preceded a parabolic price rally. This could set the stage for a surge to an all-time high.
Another analyst CryptoCurb has an even more bullish Solana price prediction. In his analysis, he noted that Solana had entered had entered a demand zone where buying pressure has previously been strong. If Solana were to bounce from this zone, it could make a massive rally towards $1,000.
Solana price is struggling to bounce past $150. However, the proposal to reduce inflation could bode well for SOL in the long term. If the proposal passes, it could also spike short-term volatility as traders anticipate the effects that it will have on the price.
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