Solana News Today: Solana's Inflation Cut Threatens Decentralization Amid Price Surge

Solana's price surged 5.44% to $138.56 on Nov. 24, 2025, driven by a 500% week-over-week spike in x402 protocol activity, which processed over 500,000 transactions and $100,000 in volume during the Nov. 22-23 weekend. This rally coincided with the Solana community's push for a new proposal-SIMD-0411-aimed at reducing future token issuance by 22.3 million SOL to achieve a 1.5% inflation target by 2029. While the plan seeks to curb supply growth, critics warn it could lower staking yields, potentially pushing 47 validators out of the network and raising decentralization concerns.

The price momentum reflects growing institutional and retail interest, with Solana's market cap reaching $77.47 billion and trading volume exceeding $6.36 billion. Despite trading below its peak of $293.31, the asset's resilience amid broader market volatility has drawn attention from analysts. CoinPedia projects a bullish trajectory, with Solana (SOL) potentially reaching $500 by 2030 under optimistic scenarios. Shorter-term forecasts suggest a 2025 price range of $250 to $400, hinging on the success of the Alpenglow upgrade-a technical overhaul expected to reduce block finalization times to 150 milliseconds and enhance network scalability.

Institutional participation is also rising. Entities like Bit Mining, Upexi, and DeFi Development Corp. hold over 3.5 million SOL, valued at more than $591 million, signaling confidence in Solana's long-term prospects. However, risks remain. Regulatory scrutiny or network congestion could temper gains, pushing the price toward $250 annually. Analysts emphasize that while the x402 protocol's surge validates Solana's infrastructure, the SIMD-0411 proposal's long-term impact on validator economics and decentralization will be critical to monitor.

Looking ahead, CoinPedia's projections extend through 2030, with potential highs of $1,351 if adoption and technical upgrades align with expectations. The path to these targets, however, depends on macroeconomic conditions, regulatory developments, and the broader crypto market's performance. As the Solana ecosystem continues to evolve, its ability to balance innovation with decentralization will likely determine whether it meets-or exceeds-these ambitious forecasts.