🔥 Solana's Big Supply Cut - SOL Crypto Analysis

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The video analyzes Solana's performance relative to Bitcoin and the broader crypto market, highlighting its recent outperformance. The Solana vote to double disinflation, passing by a narrow margin (67% yes vs. 66.67% needed), is discussed. Key metrics presented include: Solana's inflation rate of 3.65% per annum, resulting in approximately 23 million new SOL tokens over 12 months, valued at $2.3 billion at $100 per SOL. Annual chain fees are estimated at $276 million. The vote is expected to reduce the inflation rate cut by 30% yearly, potentially reaching the floor of its inflation schedule three years earlier than planned. A significant portion of SOL, 69%, is staked, providing an annual reward of around 5.5%, which will decrease to approximately 2% post-dilution. The circulating supply has increased by 8% over the last 12 months. Despite the vote passing to print less, the other proposal to burn more fees failed. The analysis points out that the 'print less' aspect of the vote is not yet active, and the 'burn more' aspect did not pass. The video also touches on market sentiment, with bears paying a premium on perpetual futures exchanges, indicating a potentially bullish short-term sentiment. Solana's total value locked (TVL) has decreased by 53% in dollar terms over 12 months but has increased by 5% in SOL terms, suggesting a potential recovery in the underlying ecosystem activity. DEX volume on Solana is double that of Ethereum in the last 30 days, and stablecoin market cap on Solana has grown by 35%. The conclusion suggests that if demand increases, Solana has significant upside potential, with Alpenglow, a network upgrade, being the next catalyst to watch.

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