Ethereum, Solana Scarcity to Outpace Gold by 2031
Grayscale has released an analysis suggesting that Ethereum (ETH) and Solana (SOL) could become scarcer than gold due to slowing growth in new supply. New proposals are being advanced on both networks to increase token burns and reduce inflation, which could lead to annual inflation rates below 1.8% by 2031 - the current rate of gold's supply growth.
According to Grayscale, if these proposals are adopted, Ethereum and Solana would also have lower annual inflation rates than the U.S. Consumer Price Index (CPI), which has seen a roughly 3.3% increase. The analysis suggests that the amount of newly issued Ethereum and Solana could fall sharply over time, slowing supply growth and increasing scarcity.
Grayscale's report highlights potential changes to Ethereum and Solana's token economics, which could have significant implications for investors and users of these networks.