$SOL price action looks strong, but many traders overlook a key factor: $SOL has no max supply, and that matters for long-term holders.
🔸 Unlimited supply = dilution risk
New tokens can always be minted, which slowly reduces the value of existing holdings.
🔸 Inflation is part of the system
$SOL inflation rate decreases every year, but it still adds fresh tokens into circulation.
🔸 Burning helps, but not enough
A portion of fees is burned, yet the overall issuance remains larger — meaning net inflation stays positive.
🔸 Stakers benefit, non-stakers lose
If you don’t stake your , you take the full impact of dilution over time.
🔸 Strong demand is the only offset
As long as adoption keeps growing, price holds up. If demand slows, inflation becomes a real weight.
📌 Bottom Line:
Solana is powerful technology with huge ecosystem momentum — but understanding its supply mechanics is crucial before going all-in. Smart traders don’t just follow hype; they study the math behind the move.
