Solana

<a href="https://finbold.com/how-to-buy-solana" rel="noopener noreferrer nofollow">Solana</a> (<a href="https://finbold.com/cryptocurrency/solana/" rel="noopener noreferrer nofollow">SOL</a>) reached an all-time high price of $259.96 on November 6, 2021, as well as an all-time high market cap of $80.965 billion on the same date.Solana has a novel <a href="https://docs.solana.com/inflation/inflation_schedule" rel="noopener noreferrer nofollow">supply inflation schedule</a>, with an Initial Inflation Rate of 8% that started in February 2021, a yearly Disinflation Rate of -15%, that will reduce SOL’s supply inflation to a fixed value called Long-term Inflation Rate, of 1.5% per year.However, even with a controlled and diminishing supply inflation rate, Solana is still affected by its token’s inflation. Considering <a href="https://www.tradingview.com/x/Q3nNIFB0/" rel="noopener noreferrer nofollow">data</a> retrieved by Finbold on September 6, with a circulating supply of around 408.949 million SOL, one Solana would be worth close to $198 — $61.96 (23.8%) less than its all-time high price in US dollars.Solana Market Cap All-Time High on November 6, 2021. Source: <a href="https://www.tradingview.com/x/Q3nNIFB0/" rel="noopener noreferrer nofollow">TradingView</a>Moreover, market capitalization is usually used to measure the market’s perception of value in a given asset, as well as its speculative demand in a given moment. This means that Solana constantly needs an increased demand to meet historical prices with a previously lower supply.<h2 id="header-0">Solana price analysis</h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/2ecb1042aa5b446bb28b49e82d0c60c2.jpg" />Solana Market Cap All-Time High on November 6, 2021. Source: <a href="https://www.tradingview.com/x/Q3nNIFB0/" rel="noopener noreferrer nofollow">TradingView</a>Moreover, market capitalization is usually used to measure the market’s perception of value in a given asset, as well as its speculative demand in a given moment. This means that Solana constantly needs an increased demand to meet historical prices with a previously lower supply.<h2 id="header-1">Solana price analysis</h2>Meanwhile, SOL is trading at $19.79 at the time of publication, which would potentially offer the possibility for Solana investors to gain 900% for purchases made at this moment if this layer-1 blockchain native token ever meets previous demand.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/7b5ff93393cf46ba8a8f3b6316b8ec0d.jpg" />SOL 1-year price chart. Source: FinboldComparatively, the current price is -92.39% lower than the all-time high price.<h2 id="header-2">Solana supply inflation</h2>Solana does not have a capped maximum supply, meaning that new tokens will always be created at a programed rate, to be distributed to network <a href="https://finbold.com/guide/cryptocurrency-staking-guide/#h-staking-requirements" rel="noopener noreferrer nofollow">validators</a> according to their <a href="https://finbold.com/cryptocurrency-staking-guide" rel="noopener noreferrer nofollow">staked</a> amount.According to Solana’s <a href="https://docs.solana.com/inflation/inflation_schedule" rel="noopener noreferrer nofollow">documentation</a>, the proposed yearly inflation schedule is illustrated in the following chart, considering both the Initial Inflation Rate (8%), the Disinflation Rate (-15%), and the Long-term Inflation Rate (1.5%).<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/f55fd194ae9d45bbba95f2c9c9ed7c61.jpg" />Solana’s proposed inflation schedule. Source: <a href="https://docs.solana.com/inflation/inflation_schedule" rel="noopener noreferrer nofollow">Solana Foundation</a>Interestingly, the current yearly inflation rate should be somewhere between 5% and 5.5%, but the nominal <a href="https://finbold.com/guide/cryptocurrency-staking-guide/#h-what-is-cryptocurrency-staking" rel="noopener noreferrer nofollow">staking</a> APY is at 7.57%, <a href="https://solanabeach.io/validators" rel="noopener noreferrer nofollow">according</a> to Solana Beach Block Explorer. The staking APY varies according to the total staked amount of SOL, weighted by the current inflation rate.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/981f92556ecc4ddf9369a7a98029bd76.jpg" />Solana Validators stats. Source: <a href="https://solanabeach.io/validators" rel="noopener noreferrer nofollow">Solana Beach</a>Besides the circulating supply and the infinite maximum supply, Solana also has a vested (or locked) supply of 147.751 million SOL, by press time. These vested tokens will be released over time by Solana Labs, Solana Foundation, team members, and private investors, also impacting the token’s value through inflation (or monetary expansion).<h2 id="header-3">How other cryptocurrencies would perform according to their all-time high market cap?</h2><ul><li><a href="https://finbold.com/xrp-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">XRP would trade at this price if it hits its all-time high market cap</a></li><li><a href="https://finbold.com/ethereum-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">Ethereum would trade at this price if it hits its all-time high market cap</a></li><li><a href="https://finbold.com/dogecoin-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">Dogecoin would trade at this price if it hits its all-time high market cap</a></li><li><a href="https://finbold.com/shib-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">SHIB would trade at this price if it hits its all-time high market cap</a></li><li><a href="https://finbold.com/cardano-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">Cardano would trade at this price if it hits its all-time high market cap</a></li><li><a href="https://finbold.com/bitcoin-would-trade-at-this-price-if-it-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow">Bitcoin would trade at this price if it hits its all-time high market cap</a></li></ul>Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.Read more cryptocurrency news on<a href="https://finbold.com/solana-would-trade-at-this-price-if-sol-hits-its-all-time-high-market-cap/" rel="noopener noreferrer nofollow"> Finbold.com</a>.

Solana would trade at this price if SOL hits its all-time high market cap

Table of Contents

Finbold

Other articles published on Sep 6, 2023

Japan's SBI Confirms XRP Use for International Remittance

Navigating the Future: The PayCoinCapital Ignite Program

Forex Expo happening in Dubai with 130+ companies in the Financial Market

SOMA Finance to Issue Retail Compliant Digital Security $SOMA

Binance to Include XRP and Dogecoin for New USD Stablecoin

Polygon awaits PIP approval as Decentraland and Borroe.Finance gain momentum

Join our free newsletter for daily crypto updates!