Solana Upgrades Gain Traction as Analyst Predicts $250 Price Rebound
DeFi Dev Corp has announced its support for two Solana upgrade proposals, SIMD-0550 and SIMD-0553. These changes aim to reduce the number of new SOL tokens entering circulation and increase token burns.
SIMD-0550 focuses on reducing the network's inflation rate, accelerating the move to a 1.5% terminal inflation rate. This could result in about an 18.9 million SOL reduction in new tokens created over the next six years, according to DeFi Dev Corp.
The second proposal, SIMD-0553, introduces resource-based fees that will be burned, increasing daily burns from around 648 SOL to between 7,500 and 9,000 SOL at current network activity. This would create a stronger link between network usage and the amount of SOL taken out of supply.
Market analyst Borovik believes Solana looks undervalued at $73 and could return to previous price levels, citing SOL's past performance.