Solana Governance Proposal Aims to Strengthen Network Supply Dynamics Amid Weakening Retail Participation
Solana's short-term outlook is uncertain due to declining wallet holders and slowing retail participation. According to Glassnode, the number of SOL holders has fallen from nearly 11.8 million to around 11.3 million over the past two weeks.
This drop in holder count can be attributed to various factors, including profit-taking by smaller investors or reduced inflows of new participants. While it may not necessarily imply widespread selling, it does point to weaker short-term network participation compared to previous weeks.
On the other hand, a proposed change to Solana's token issuance model is gaining traction in the governance process. If approved, this proposal would accelerate the decline in SOL issuance by 18.9 million tokens over six years, reducing future token emissions and potentially strengthening the network's supply dynamics.