SOL trades near $74 as traders weigh a new burn proposal big ETF buy Solana is trading around $73 to $74 at the time of writing, down from its summer highs. Two separate stories are pulling i
Solana is trading around $73 to $74 at the time of writing, down from its summer highs. Two separate stories are pulling investor attention this week.
First, a new governance proposal called SIMD-0553 wants to sharply raise how much Solana gets burned every day.
Second, Bitwise's spot $SOL ETF has quietly become one of the biggest holders of the token tied to any single product.
Both stories touch supply and demand, the two forces that move any token's price over time.
Solana Improvement Document-0553 is a technical proposal that would change how the network charges transaction fees. Right now, a flat base fee applies, and half of it gets burned, permanently removed from supply.
The proposal would instead charge fees based on how much computing power and data a transaction actually uses. Heavier transactions would pay more, and more of that fee would be destroyed.
According to the report, citing SIMD-0553 and Solana Compass, daily burns currently sit near 648 SOL, worth about $47,000 at current prices.
If the proposal passes, daily burns could jump to between 7,500 and 9,000 SOL, or up to roughly $650,000 a day. That's close to a 14x increase.
Not on its own. The network still issues about 60,000 new tokens every day, close to 3.8% annual inflation.
Even at the top end of the SIMD-0553 range, 9,000 SOL burned daily is far smaller than 60,000 SOL issued daily.
The chart data makes this clear: new issuance dwarfs both current and proposed burn levels.
That's why SIMD-0553 doesn't travel alone. A companion proposal, SIMD-0550, would double the annual disinflation rate from 15% to 30%.
That would pull the 1.5% terminal inflation floor forward from 2032 to 2029, removing close to 18.9 million tokens in future emissions.
Together, the two proposals attack supply from both directions. Neither has passed yet. SIMD-0228, an earlier and more aggressive version of this idea, failed to gain enough validator support back in March 2025.
Metric
Current
If SIMD-0553 Passes
Daily Soalna issued
~60,000 SOL
~60,000 SOL
Daily Solana burned
648 SOL (~$47,000)
7,500–9,000 SOL (up to ~$650,000)
Annual inflation
~3.8%
Still positive, but offset more
Terminal inflation floor reached
2032
2029 (with SIMD-0550)
Why is Bitwise buying so much Solana right now?Separately from the governance debate, on-chain analytics firm Arkham reported on August 3 that clients of Bitwise's spot Solana ETF have purchased a total of $891.9 million worth of SOL through the fund, known as BSOL.
Arkham's data shows BSOL now accounts for close to 80% of all Solana ETF inflows industry-wide, making it the largest single product of its kind. Bitwise's fund reportedly holds a portfolio worth close to $4 billion, though that figure includes assets beyond Solana alone.
This kind of steady buying adds a demand-side factor separate from the network's own tokenomics. Every dollar that flows into a spot ETF generally means the fund manager needs to buy and hold real tokens to back those shares.
Some traders online have floated the idea that BlackRock could eventually launch its own Solana ETF, which would add another major buyer to the market. As of now, that remains speculation and not a confirmed filing.
What are traders saying about the chart setup?On the technical side, some chart watchers have pointed to a history of big rallies following long consolidation periods. One widely shared post compared the 2021 and 2023 breakout patterns, both followed by large multi-month rallies after the token retested support.
The post's author was careful to note that history doesn't guarantee future results, and that's worth repeating here. Past chart patterns can offer context, but they aren't a promise of what happens next, especially with two governance votes still pending.
Right now, the token sits below its key moving averages, with resistance clustered in the $76 to $80 range and support closer to $72. A decisive move above $80 would likely need a governance win, continued ETF inflows, or both.
The bottom line for SOL price watchersThis week's story isn't about one single catalyst. It's a mix of a proposed supply squeeze that's still smaller than issuance, and real institutional buying already happening through Bitwise's ETF.
Neither guarantees a specific price target. SIMD-0553 and SIMD-0550 both need governance support to pass, and ETF flows can slow down just as quickly as they picked up.
Traders are essentially watching two separate experiments: whether Solana can tighten its own supply, and whether Wall Street keeps showing up as a buyer.
DisclaimerThis article is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Cryptocurrency markets are highly volatile, and prices can change rapidly. Always conduct your own research and consult a licensed financial advisor before making any investment decisions.
