\n<\/p>\n
A widely followed analyst is leaning bullish on Solana (SOL<\/a>) over the long term amid an upcoming upgrade.<\/p>\n In a new video, the analyst pseudonymously known as InvestAnswers tells<\/a> his 563,000 YouTube subscribers that a proposal to reduce Solana\u2019s inflation rate by around 80% at the end of Epoch 755<\/a> heightens Solana\u2019s bullish prospects.<\/p>\n An Epoch is a fixed period during which certain network activities such as governance matters, protocol upgrades, and other related matters are decided and executed.<\/p>\n At the same time, InvestAnswers says the bullish thesis for the sixth-largest crypto asset by market cap is further improved if the U.S. Securities and Exchange Commission (SEC) approves a spot Solana exchange-traded fund (ETF).<\/p>\n \u201c\u2026they\u2019re coming up with this vote to reduce inflation on Solana, which currently is not that bad at all. But that will reduce inflation from about 4.8% down to about 0.86% inflation.<\/em><\/p>\n If it passes, if it passes and it\u2019s looking possible that it might\u2026 the voting ends at the end of Epoch 755\u2026 if this does happen, all of a sudden Solana becomes the hardest layer-one asset.<\/em><\/p>\n Remember, Bitcoin inflation is 0.85%. Solana\u2019s, if this passes, will be 0.86%.<\/em><\/p>\n And my question is, what happens if a Solana ETF comes? I mean, so much is staked. There\u2019s very little on exchanges. We could see a crazy pump.\u201d<\/em><\/p>\n On the reduced staking rewards, the proposal to cut Solana\u2019s inflation rate is likely to have, InvestAnswers says,<\/p>\n \u201cPeople say, \u2018well, if inflation goes down, won\u2019t my staking rewards go down?\u2019 Well, the math of it is your price appreciation will far exceed your staking rewards.<\/em><\/p>\n So please think price appreciation \u2013 do you want an asset to go from $120 to $240 or do you want an asset to stay at $120 and get 6% or 8% per year. The answer is you want it to double. That will impact price appreciation more.\u201d<\/em><\/p>\n Solana is trading at $126 at time of writing.<\/p>\n