- Coinbase acquires VECTORDOTFUN to better serve Solana’s active ecosystem.
- Solana’s disinflation rate could double, reducing total SOL supply growth.
- Analyst views SOL price movement, expecting gains with a breakout above $130.
Coinbase has made a strategic move to enhance its support for the Solana ecosystem by acquiring VECTORDOTFUN, an on-chain trading platform built on the Solana blockchain.
According to Brian Armstrong, this acquisition is part of Coinbase’s plan to strengthen its infrastructure and provide more services to Solana users. The platform’s technology will be integrated directly into Coinbase, aiming to improve services for one of the most active crypto ecosystems.
The deal reflects Coinbase’s commitment to expanding its offerings related to Solana, as they work to integrate Solana-native technology and talent into their platform.
As part of this expansion, Coinbase has also made upgrades to its infrastructure, including a 5x improvement in block processing throughput and a 4x increase in RPC performance. These efforts will contribute to better trading and user experience for Solana enthusiasts on Coinbase.
Solana’s Disinflation Proposal Set to Impact Tokenomics
In addition to the Coinbase acquisition, the Solana Foundation has introduced a new proposal to speed up the disinflation rate of the Solana (SOL) token. Known as SIMD-0411, the proposal aims to double the current disinflation rate from -15% to -30%, accelerating the decline in inflation over a shorter period. This move will reduce the inflation rate over three years, instead of the previously projected six years.
The goal is to slow the growth of SOL’s total supply by 22 million SOL, which is worth around $2.9 billion at the current price. As a result, staking yields will decrease, though they will do so gradually over time.
Solana Price Action Faces Resistance at $130
The price of Solana (SOL) has been under pressure, with a 33.25% decline over the past 30 days. Despite the broader crypto market downturn, SOL’s market capitalization has shown some recovery.
Analysts, including Crypto Tony, have noted that for Solana to shift its market structure, the price must reclaim the $130 level. If SOL manages to break above this resistance, there is potential for further gains, with targets at $135 or $140.
However, SOL’s price faces challenges, especially if the coin fails to break through the $130 barrier. A rejection at this level could push the price back toward $124, and possibly lower to $120. As such, Solana is at a critical juncture, with key price levels that will determine its short-term direction in the market.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
