Grayscale Warns ETH and SOL May Become Scarcer Assets by 2031
Grayscale has painted a concerning picture for Ethereum (ETH) and Solana (SOL), suggesting that their respective networks may lower annual production of new tokens. This could potentially make ETH and SOL scarcer assets by 2031, according to Zach Pandl, Head of Research at Grayscale.
Currently, issuing new ETH and SOL helps fund staking rewards on Ethereum and Solana. However, if the suggested modifications are implemented, this inflation would decrease, making the value of existing tokens rise if demand remains constant or increases, and fewer new tokens are introduced to the market.
The proposed changes would reduce annual supply growth for ETH and SOL to around 0.4% and 1.1%, respectively, which is closer to Bitcoin's estimated supply growth and below gold's estimated 1.8% annual supply growth.