Galaxy Research: Supply Cuts Won't Reprice ETH or SOL

Galaxy Research has expressed skepticism about proposals to reduce token issuance rates on both Ethereum and Solana networks, warning that supply cuts alone won't reprice ETH or SOL.

The company's Vice President of Research Lucas Tcheyan noted that demand will ultimately decide the price direction for these assets. This comes as developers on both chains consider plans to slow down token minting rates.

Ethereum's proposed 'tapered issuance burn' would reduce validator rewards over an 18-month period, potentially reducing staking yields from 2.6% to 1.2%. The proposal has drawn opposition, with Aave founder Stani Kulechov and Sharplink CEO Joseph Chalom arguing that validators could run at a loss once hardware and electricity costs are factored in.

Solana, on the other hand, is moving forward with two proposals through its on-chain governance system. The first would double the annual disinflation rate to 30%, removing approximately 18.9 million SOL from future emissions. Meanwhile, a second proposal aims to replace Solana's flat per-signature fee with a resource-based charge that scales with transaction compute demand and is burned outright.