Solana treasury backs ‘double disinflation’ plan amid 30% price decline

The Solana price has been experiencing a significant decline since October, largely attributed to the actions of the meme coin launchpad Pump.fun, which has reportedly sold over $436 million in SOL. This cash-out has raised concerns about the stability of the Solana ecosystem as it coincides with a broader downturn in the cryptocurrency market.

Bitcoin has experienced a significant decline, falling over 30% in value, with recent trading pushing the price down to around $82,000. This sharp drop has caused panic among newer investors, while veteran holders remain largely unfazed, viewing such volatility as a normal aspect of Bitcoin's history.

VanEck has amended its filing for a BNB ETF, eliminating all staking plans, which marks a significant shift from its previous strategy that included staking features similar to its Solana ETF. This decision comes amid increasing regulatory scrutiny and uncertainty in the cryptocurrency market.

MSCI has initiated a consultation that could lead to the exclusion of companies holding 50% or more of their balance sheet in Bitcoin or other digital assets from its global equity indexes. This move has raised concerns about forced selling risks, particularly for Strategy ($MSTR), which is heavily leveraged in Bitcoin investments. The market reacted negatively, exacerbated by a bearish note from JPMorgan.

Solana's price has approached $140, buoyed by strong ETF inflows and increased network revenue, indicating a renewed risk appetite in the cryptocurrency market. The cryptocurrency has shown resilience, trading in the high $130s with a market cap around $76 billion, suggesting significant liquidity from institutional investors.

Solana exchange-traded funds (ETFs) have attracted $369 million in inflows in November, indicating a strong preference among investors for yield-bearing assets, while Bitcoin and Ether ETFs have faced significant redemptions totaling billions. This trend highlights a shift in investor focus towards more productive cryptocurrency investments.

Crypto prices have shown a positive trend today, November 25, with Bitcoin trading at $88,590, up 1.6%, as easing Federal Reserve rate expectations and a renewed risk appetite contribute to a 2.4% increase in total market capitalization, reaching $3.1 trillion.

The SEC has issued a rare no-action letter for the Solana DePIN project token FUSE, marking a significant regulatory milestone for decentralized physical infrastructure networks (DePIN). This follows a similar letter granted to DoubleZero several months prior, indicating a potential shift in regulatory attitudes towards such projects.