Ethereum and Solana Prices Could Rise with Token Economics Changes

Grayscale's Research Head Zach Pandl has weighed in on proposed changes to Ethereum and Solana's token economics, suggesting that if implemented, they could lead to a surge in prices for both assets.

The code changes currently underway aim to reduce the annual token inflation rates of $ETH and $SOL. According to Grayscale's estimates, Ethereum's annual supply inflation could fall to approximately 0.4% by the end of 2031, close to Bitcoin's rate.

Solana's annual supply inflation is projected to fall to around 1.1%, significantly lower than its current rate. For comparison, Grayscale noted that the annual increase in gold supply is approximately 1.8 percent, while US consumer price index inflation is approximately 3.3 percent.