ETH, SOL May Challenge Gold's Rarity with Proposed Reforms

A recent Grayscale study suggests that Ethereum and Solana may soon challenge gold's rarity. According to the projections, the annual growth of both cryptocurrencies' supply could fall below 1.8% by 2031, a threshold currently met only by Bitcoin. This development is attributed to several proposed reforms, including EIP-8361 for Ethereum and SIMD-0550 and SIMD-0553 for Solana.

The proposed changes aim to reduce the issuance of new tokens, with ETH's annual inflation potentially dropping to 0.4% and SOL's to 1.1%. This could make these cryptocurrencies rarer than physical gold, a status that may support their prices and transform them into leading stores of value.

Grayscale notes that while this tightening reduces direct returns paid to stakers and ETFs, it could be offset by increased token prices. The study highlights the importance of community governance in implementing these changes, with Solana's plan reportedly enjoying broader support than Ethereum's equivalent.