Solana is advancing two governance proposals, which could increase SOL burns while cutting down the issuance. With such a surrounding, a market expert stated that SOL could reach $150 within just a few weeks.
According to 21Shares, Solana is advancing two governance proposals, SIMD-550 and SIMD-553. The two proposals support Solana’s tokenomics by increasing SOL burns and reducing the supply entering circulation.
Solana’s proposals could improve the tokenomics
SIMD-550 focuses on reducing SOL inflation faster. It proposes doubling Solana’s annual disinflation rate from 15% to 30%. In simple terms, Solana currently reduces its inflation rate gradually over time. SIMD-550 would make that reduction happen twice as quickly. Under the proposal, Solana would reach its 1.5% terminal inflation rate around the first half of 2029, rather than around 2032 under the existing schedule.
SIMD-553 takes the opposite side of the supply equation: instead of reducing issuance, it aims to increase the amount of SOL permanently removed from circulation. It introduces a resource/inclusion fee linked to the computational resources a transaction requests, particularly for financial activity.
The relevant fees would be burned rather than simply remaining as validator revenue. Under current activity estimates, the proposal could increase daily SOL burns from roughly 600–800 SOL to around 7,500–9,000 SOL.
If the SIMD-550 proposal passes, fewer new SOL tokens would be issued to validators and stakers. The downside for stakers is that their nominal staking rewards would also decline because a significant portion of those rewards comes from newly issued SOL.
Under this proposal, SIMD-553, the burns will be increased, and this would mean the SOL circulating in the market would be less. When the supply is lower, the demand spikes, and the price usually appreciates. According to an market expert, SOL could hit $150 in the coming weeks.
Analyst expect SOL to hit $150, but it struggles at $97
Although the analyst expected SOL to hit $150, the coin is currently under immense pressure. Priced at $97, SOL is facing a lot of selling pressure, and the RSI indicator has moved into the overbought.
Usually, when the RSI moves to these extremes, the market corrects the price and the coin loses value. As such, SOL could go through a retracement period in the coming days. Even if SOL manages to recover from the pullback, the $100 level could present a major hurdle, as it represents a key psychological resistance. A psychological resistance is a price level that attracts significant attention from traders because it is a round, easy-to-remember number.
In SOL’s case, $100 is particularly important because traders may place sell orders around this level, while those who bought SOL at lower prices may use the opportunity to take profits. As a result, buying pressure could weaken as SOL approaches $100, making it difficult for the token to break above the level decisively. A sustained breakout above $100, however, could change market sentiment and encourage more buyers to enter, potentially turning the former resistance into support.
