Last week, Brazil greenlit the first spot Solana exchange-traded fund (ETF), sparking debates about the possibility of US approval. However, several financial experts remain skeptical due to concerns over the native token, SOL.
A key issue is the substantial daily issuance of SOL tokens.
Challenges to Solana ETF Approval
Data from a Dune dashboard on August 11 showed an issuance of over 162,503 SOL, valued at approximately $25 million. These tokens are rewards distributed to validators to maintain network security. Critics argue that this high issuance rate might increase selling pressure, potentially destabilizing the asset’s long-term value.
One outspoken critic, known as smartestmoney.eth, questioned the market demand for SOL given its high emission rate.
“Who will be the next marginal buyer of SOL when a supply overhang of 165,000 daily emissions—with more unlocks to come—overpowers the demand?” He asked…
