According to @ItsDave_ADA, Solana SOL has minted $38.3 billion worth of new supply in just over three years due to an inflationary design without a max cap, raising dilution concerns for investors, source: x.com/ItsDave_ADA. Solana’s protocol uses an inflation schedule that began near 8 percent annual issuance and decays by 15 percent per year toward a roughly 1.5 percent terminal rate, and it does not enforce a fixed maximum supply, source: docs.solana.com. By contrast, Bitcoin BTC has a hard cap of 21 million coins written into the protocol, source: bitcoin.org, while Cardano ADA has a fixed maximum supply near 45 billion ADA, source: cardano.org. For trading, monitor SOL’s current inflation rate and active staking participation to gauge net dilution for non-stakers versus staking yield, and compare the supply dynamics and scarcity narratives when positioning SOL relative to BTC and ADA, source: docs.solana.com for Solana inflation mechanics; bitcoin.org for BTC cap; cardano.org for ADA supply.

According to @ItsDave_ADA, Solana’s circulating supply increased about 53% in three years from 354.9M to 543.5M, highlighting dilution risk for non-stakers (source: @ItsDave_ADA on X). Solana’s official documentation confirms there is no hard cap and specifies an initial 8% inflation that decays 15% annually to a long‑term rate of 1.5%, with 50% of transaction fees burned to reduce net issuance (source: Solana Documentation). Cardano’s documentation states ADA has a fixed maximum supply of 45 billion with rewards drawn from a finite reserve rather than perpetual inflation (source: Cardano Documentation). The Bitcoin whitepaper sets a 21 million supply cap via a programmed halving schedule, creating predictable issuance scarcity (source: Bitcoin Whitepaper). For trading, this means SOL spot holders who do not stake face ongoing dilution roughly equal to net issuance, while staking captures inflationary rewards that can partially offset dilution under normal conditions (source: Solana Documentation). Relative‑value traders can evaluate SOL versus capped‑supply assets like ADA and BTC when liquidity tightens since issuance mechanics differ materially and affect long‑term dilution profiles (source: Cardano Documentation; Bitcoin Whitepaper; Solana Documentation). Traders should monitor SOL’s circulating supply, current inflation rate, and fee burn to gauge net issuance before taking SOL spot or perp exposure (source: Solana Explorer and Solana Documentation).

According to Miles Deutscher, while Pump Fun offers skilled traders opportunities to profit, the broader impact on the crypto market is negative due to increased dilution, faster token rotations, and a rising number of retail investors suffering losses, leading to decreased user participation and liquidity. Deutscher highlights that most traders are not actively managing positions, and the indirect effects such as frequent listings and rapid market changes discourage long-term holders, affecting overall market stability and trading strategies (source: @milesdeutscher on Twitter, June 4, 2025).

According to MilkRoadDaily, understanding key factors such as token dilution, unlock schedules, inflation rates, and value capture mechanisms is essential for crypto traders aiming for long-term profitability. The source emphasizes that the majority of tokens do not yield significant returns, and highlights the importance of analyzing these metrics before making investment decisions. Their PRO members utilize structured frameworks to evaluate tokenomics, helping them anticipate market moves during major unlock events and periods of high inflation, which can impact token price and liquidity (Source: Milk Road Twitter, May 15, 2025).