Ethereum and Solana Supply Growth May Plummet Below Gold's Rate

Ethereum and Solana's supply growth could see significant drops in the near future, according to Grayscale Research. The firm estimates that Ethereum's annual supply growth will fall to around 0.4% by 2031, while Solana's will reach approximately 1.1%. These rates are lower than the roughly 1.8% annual expansion of above-ground gold stocks.

The projections depend on immediate implementation and steady network activity, as well as an Ethereum staking ratio remaining near one-third of circulating supply. Grayscale cites two proposals for Ethereum: EIP-8363, 'Tapered Issuance Burn,' which would burn a larger share of validator consensus rewards as more ETH becomes staked across the network.

On Solana, two proposals target issuance through different mechanisms: SIMD-0550 and SIMD-0553. If approved, these changes could push annual supply growth toward Grayscale's estimated 1.1% by 2031 for Solana.