Solana Beach priceSOLANA

🚨 JUST IN: Solana’s SIMD-0228 proposal to cut $SOL inflation by up to 80% has failed.

🚨 One of the FTX/Alameda addresses withdrew $23 million from $SOL staking and distributed it to 38 addresses. Now they hold a total of $178 million in #Solana! Let's hope they don't start dumping these coins.

Top 15 cryptos by fees over the past 7 days. Notable change as Solana and Ethereum dropped to ranks 14 and 15, leaving more protocols than chains in the top 10.

SIMD-228 proposal, which aims to cut SOL inflation by 80%, has gained 35.7% support from Solana validators so far. According to data from Dune Analytics, 701 out of the 1327 active Solana ( SOL ) validators have voted. 1.2% have abstained, 17.2% are against the proposal, and 37.5% are in favor. If SIMD-228 were approved, it would drastically cut staking rewards, reducing the amount of fresh SOL tokens entering circulation. There have been some concerns about how this would affect the network’s decentralization, even though it might lessen selling pressure. Currently, Solana’s inflation models depend on striking a balance between transaction fee burning and staking rewards. More fees are burnt during periods of heavy network traffic, which helps to counter inflation. However as transaction costs have decreased, fewer tokens are being removed from circulation. Staking incentives keep adding fresh SOL supply at a 6.8% inflation rate, which may drive down its price. SIMD-228 would lower staking rewards, reducing supply, and possibly increasing the value of SOL. However, smaller validators with low or no commission rates would find it difficult to remain profitable and might even be forced out. If enough validators leave, the decentralization of the network may weaken, which raises questions about its long-term viability. Before choosing SIMD-228, Solana developers looked at a number of options, including ones with fixed-rate adjustments. Meanwhile, Solana’s market performance has been poor in the past few weeks. As of Mar. 13, SOL is trading at $126, more than 50% down its peak of $293 in January. According to DefiLlama data , decentralized finance activity has decreased, as seen by the network’s total value locked falling from $12 billion in January to $7 billion. Due to low network usage especially as memecoin trading cools off, monthly fees have also dropped significantly, from $250 million in January to $89 million in February. Supply pressure may be reduced if SIMD-228 is approved, but its success relies on the expanding network demand. Reducing inflation by itself might not be enough to drive a strong recovery in the absence of more users and activity,

The U.S. Securities and Exchange Commission (SEC) has again postponed decisions on several cryptocurrency spot exchange-traded funds (ETFs), prolonging the wait for investors eager to see more altcoin’ backed ETFs enter the market. This delay affects ETFs tied to Solana, XRP, Litecoin, and Dogecoin, among others. The SEC stated that additional time is needed to evaluate the proposed ETFs and their potential impact on the market. While this move may seem like a setback, analysts remain optimistic that these products will eventually receive regulatory approval. In its latest round of postponements, the SEC extended the review process for multiple altcoin spot ETFs , including those filed by VanEck, Canary Capital, Grayscale, Bitwise, and 21Shares. The decision affects several key applications, such as VanEck’s Spot Solana ETF, Canary’s Spot Litecoin and XRP ETFs, and Grayscale’s Spot Dogecoin and XRP ETFs. The regulator also delayed decisions on ETFs that feature staking options for Ethereum and in-kind creation and redemption mechanisms for Bitcoin and Ethereum ETFs. The SEC has specifically pushed back decisions on Grayscale’s Spot XRP ETF and Cboe BZX’s Spot Solana ETF until May. Additionally, the deadline for the Canary Spot ADA ETF has been moved to May 29. The agency cited the need for a longer review period to thoroughly examine the proposed rule changes and any issues raised by these filings. Related: A Potential Tidal Wave for the Altcoin Market: Solana ETFs Despite the postponements, industry experts remain optimistic about the eventual approval of these ETFs. Bloomberg ETF analyst James Seyffart reassured investors that this is part of the SEC’s standard process. He pointed out that the delay does not indicate a lower chance of approval. According to Seyffart, the final deadlines for these ETFs extend until October, giving the agency ample time for further evaluation. Similarly, analyst Eric Balchunas highlighted that delays were anticipated across the board, including for Ethereum ETFs featuring staking capabilities. He noted that while regulatory scrutiny remains high, the likelihood of approval remains high. The delay comes amid shifting regulatory attitudes towards digital assets in the U.S. The recent executive order signed by President Donald Trump, which established a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, indicates a growing institutional acceptance of cryptocurrency. Related: SEC Cracks Down on Solana ETFs: What It Means for Crypto’s Future However, the SEC’s reluctance to greenlight altcoin ETF approvals suggests a more cautious stance when dealing with non-Bitcoin assets. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.