ETH and SOL Set for Supply Compression, Grayscale Says

Grayscale has released projections that could fundamentally transform the asset profile of Ethereum and Solana. According to Grayscale, both networks are on track to see significant drops in their inflation rates over the coming years.

The firm highlights that Ethereum's net inflation rate has been hovering around 0% since the activation of EIP-1559 and the transition to Proof-of-Stake. The burning of transaction fees combined with staking emissions regularly pushes ETH into deflationary territory during periods of high on-chain activity.

For Solana, Grayscale estimates that its programmatic reduction schedule will lead to a gradual disinflation, coupled with a high staking rate. This is mechanically reducing selling pressure on the secondary market.

The dynamics converge toward the same outcome: available market supply contracting, while institutional demand continues to grow. In traditional financial markets, supply compression is one of the most powerful long-term price appreciation catalysts.