Grayscale's statement on Ethereum and Solana: Supply decline may support prices

Zach Pandl, head of Grayscale's research unit, said that if the token economy changes on the agenda for Ethereum and Solana are implemented, the new supply may decrease and this may put upward pressure on ETH and SOL prices.

According to Grayscale's estimates, if these proposals are accepted, Ethereum's annual supply increase rate may decrease to approximately 0.4 percent and Solana's to 1.1 percent by the end of 2031.

Pandl stated that the decrease in new token issuance will also reduce the amount of ETH and SOL distributed as staking rewards. On the other hand, he stated that the decrease in the amount of new tokens entering circulation could support prices by making the supply more scarce.

Non-staking investors can benefit more

According to Pandl, possible changes may have positive results, especially for investors who do not engage in staking despite holding ETH and SOL. Staking users will need to evaluate the balance between lower token rewards and possible price increases.

Both proposals are still being discussed in the Ethereum and Solana communities and there is no final decision yet.

Grayscale manager evaluated that, looking at the current table, the proposal on the Solana side has wider support within the community and therefore the probability of its implementation is higher than the change in Ethereum.