Solana Price Jumps 9% Above $110 as Tokenomics Vote Reaches Quorum

Key Takeaways

• Solana rose around 9% and briefly crossed $110, reaching its highest level since January.
• The rally coincided with SGP-0002 reaching quorum, a proposal that could reduce projected SOL issuance by 18.9 million tokens over six years.
• SOL faces immediate resistance around $110–$120, while $100 remains an important psychological support level.

Solana Price Hits Highest Level Since January

Solana extended its recent rally on August 28, climbing approximately 9% over 24 hours and briefly trading above $110. The move lifted SOL to its highest level since January and pushed its market capitalisation above $64 billion.

SOL was trading near $109.80 at the time of writing after reaching an intraday high of roughly $110.38. Cryptocurrency prices can vary slightly between trading venues, but several major platforms recorded a daily advance of between 8% and 9%.

The advance also extended Solana’s weekly gain to more than 22%, compared with a much smaller increase for the broader cryptocurrency market. SOL has now risen approximately 46% over the past month, recovering from levels near $73 at the end of July.

The rally through $100 was particularly significant because the psychological level had previously acted as resistance. SOL first moved above $100 earlier this week before accelerating towards $110 as momentum traders and short covering added to buying activity.

Bitcoin also traded near $80,000 during the session, but its daily increase was more modest. Solana’s relative strength suggested that traders were responding to token-specific developments in addition to improving sentiment across the wider cryptocurrency market.

Solana Disinflation Proposal Reaches Quorum

Attention has centred on SGP-0002, also known as the Double Disinflation proposal. The governance measure is linked to SIMD-0550 and would increase the annual rate at which Solana’s inflation declines from 15% to 30%.

A reported voting snapshot showed participation reaching approximately 33.84% of staked SOL, satisfying the proposal’s one-third quorum requirement. Votes in favour represented roughly 25% of total network stake and held a substantial lead over opposing votes while voting remained open.

The proposal would not immediately halve Solana’s current inflation rate, nor would it remove 18.9 million existing SOL tokens from circulation. Instead, it would accelerate the pace at which inflation falls towards the network’s existing long-term floor of 1.5%.

Under the SIMD-0550 proposal model, Solana would reach that terminal inflation rate in approximately 2.8 years, around the first half of 2029. Under the current schedule, reaching the same rate would take about 5.7 years, or until the first half of 2032.

The faster schedule could result in approximately 18.9 million fewer SOL tokens being issued over six years. That represents a 2.6% reduction relative to the supply projected under the existing schedule.

Lower future issuance may reduce inflation-related dilution and potential selling pressure from staking rewards. However, the relationship between supply growth and market prices is not automatic. Demand for SOL, cryptocurrency market conditions and activity across the Solana network will remain important.

Proposal Could Reduce Solana Staking Yields

SGP-0002 also presents a trade-off for validators and SOL stakers. Faster disinflation would reduce the amount of newly issued SOL distributed through staking rewards.

The proposal’s model estimates that nominal staking yields could decline from approximately 5.84% to 4.34% after the first year. Yields could then fall towards 3% in the second year and 2.25% in the third year, excluding validator commissions, transaction fees and other sources of revenue.

Supporters believe the reduction would improve Solana’s long-term monetary structure by limiting new supply. Critics have raised concerns that lower rewards could put additional pressure on smaller validators and encourage stakes to become more concentrated among larger operators.

A successful governance vote would also not activate the change immediately. Further technical development, approval and network implementation would be required before the revised issuance schedule could take effect.

Network Activity Adds Support to the SOL Rally

Solana’s price advance has not been driven solely by the governance proposal. Recent network data have also strengthened the market narrative surrounding the blockchain.

Solana processed a monthly record of approximately 4.2 billion transactions in July, representing a 13.5% increase from June and a rise of roughly 91% from December 2025. The value of tokenised real-world assets hosted on Solana has also approached $4 billion.

The combination of stronger network use, lower projected issuance and improving cryptocurrency sentiment helped SOL recover from below $75 in late July to above $100 within a month.

Nevertheless, the speed of the advance raises the possibility of increased short-term volatility. Leveraged traders who entered at lower prices may take profits as SOL approaches major resistance, while a sharp change in the governance vote or broader crypto sentiment could trigger liquidations.

SOL Price Levels to Watch After the 9% Surge

The $110 area is now the immediate level to monitor. SOL briefly traded above it but had not established a sustained breakout at the time of writing.

A decisive move above $110 could bring the $115 and $120 areas into focus. The latter is both a psychological level and a possible profit-taking zone following SOL’s rapid monthly advance.

On the downside, initial support sits around $105, followed by the previous breakout region near $100. Holding above $100 would preserve the recent pattern of higher highs and higher lows, while a sustained move below it could expose SOL to a deeper retracement towards $95.

Momentum remains positive, but the governance proposal changes the path of future issuance rather than guaranteeing greater demand. The final vote, implementation timetable, staking economics and broader cryptocurrency market will therefore remain important sources of volatility.