SOL Price Rises! Protocol Upgrade Cuts Fees by 90%

SOL is trading near $104 on 4 September after Solana activated the first phase of a major protocol upgrade that reduces on chain storage costs by up to 90%. SIMD-0437, first outlined by the Solana Foundation in July 2026, is now live on mainnet after months of planning and testing. 

The upgrade slashes the refundable rent deposit required to create accounts on the network, lowering the upfront capital needed for token accounts, program derived addresses, and any other on chain state. For developers and businesses scaling on Solana, this is a direct cost reduction.

Key Takeaways

• SIMD-0437 reduces Solana's rent deposit constant from 6,960 to 696 lamports per byte, a 90% cut rolled out across five independent feature gates.
• The first step went live on mainnet 3 September with a 9% reduction, with the second step expected on mainnet in mid September and the full 90% cut arriving in November 2026.
• SOL is trading near $104 within a $98 to $116 range, with analysts targeting $120 if the support zone holds.

What the SIMD-0437 Rent Reduction Upgrade Changes

The Solana Foundation published the SIMD-0437 proposal in July 2026, and core developers began testing it on devnet in August. 

Image Source: Solana

As of 3 September, the upgrade is live. The first step activated at the start of mainnet epoch 1028, marking the beginning of a phased rollout designed to reduce on chain storage costs without causing a sudden spike in state growth.

Rent on Solana is not a recurring fee. It is a fully refundable deposit that every account must hold to cover the cost of on chain storage across validators. 

When an account is closed, the deposit returns in full. The constant behind this deposit, lamports per byte, was set years ago at 6,960 and never adjusted. SIMD-0437 cuts it from 6,960 to 696 in five steps.

Step 1, now live, reduces the constant by 9% to 6,333. Step 2, a 27% reduction to 5,080, is live on testnet and expected on mainnet in mid September. Steps 3 through 5 are scheduled for the Agave 4.4 client release in November 2026, completing the full 90% cut. 

Each step activates independently through its own feature gate, and a fallback mechanism can reverse any step if unexpected issues arise.

The practical impact is substantial. An SPL token account that previously required a $0.159 rent deposit will cost just $0.0159 once all five steps are active. 

For a business creating one million token accounts for user onboarding, the upfront deposit drops from $159,000 to $15,900. Solana Foundation research estimates that even after the full reduction, a state bloat attack would still require roughly $17 million in locked capital. 

Data shows 75.5% of account creation events close within the same transaction, and net state growth sits at approximately 0.3 GB per day, suggesting the reduction will not cause systemic risk.

How Cheaper Storage Costs Could Fuel SOL Demand

Lower rent deposits directly improve the economics of building on Solana. Every application that creates accounts on behalf of users, from wallets and payment platforms to DeFi protocols and NFT marketplaces, now needs less SOL locked up as collateral. That capital is freed for staking, trading, or deploying into ecosystem activity.

The timing aligns with growing institutional momentum. The Bitwise Solana ETF crossed $1 billion in assets under management in late August, and firms including Fidelity and Morgan Stanley have entered the Solana ETF space. 

Spot Solana ETFs attracted $33.49 million in a single day in late August, their strongest inflow since December 2025.

Institutional demand combined with a protocol upgrade that makes Solana cheaper to use creates a reinforcing cycle. More applications deploy because costs are lower, more users onboard because applications exist, and more SOL is required to fund the growing activity. 

Solana's DEX volumes remain among the highest of any chain, and the network consistently processes hundreds of millions of transactions per month. 

A 90% reduction in upfront storage deposits removes one of the last friction points for enterprise adoption and makes the long term case for SOL demand stronger.

Traders looking to gain exposure to SOL through a regulated centralised exchange can create a Bitrue account to access spot and futures trading pairs.

SOL Price Analysis: $98 Support Holds the Key to $120

SOL is oscillating within a $98 to $116 range, with bulls and bears alternating control. The token recovered from a 52 week low of $60.20 and has established $98 to $100 as a key support zone. 

Image Source: TradingView

As long as SOL holds above this level, the path toward $110 and then $120 remains intact.

The weekly chart shows SOL pushing toward initial resistance near $110 after breaking out of a multi month descending channel. A volume backed break above $110 would open the path to the $118 to $120 zone. 

Prediction markets assign a 51.5% probability that SOL touches $110 during September and roughly 22% for $120. The weekly RSI sits near 57, constructive but not yet overbought, leaving room for further upside if momentum continues.

Here's how to trade SOL on Bitrue:

1. Create a Bitrue account and complete KYC verification to unlock full trading access across spot and derivatives.
2. Fund your account by depositing USDT or other supported assets through crypto transfer or fiat on ramp options.
3. Navigate to the SOL/USDT spot pair to buy SOL if targeting an entry near the $98 to $100 support zone on a pullback.
4. Place a market or limit order based on your preferred entry price, sizing the position according to your risk tolerance.
5. Monitor price action against the $110 and $120 resistance levels, and decide whether to hold, take profit, or move SOL to self custody.

A sustained close below $98 would weaken the bullish structure and risk a deeper pullback toward $90. Traders should treat the $98 level as the line that separates the current constructive setup from a shift in short term bias.

Conclusion

Solana's SIMD-0437 rent reduction, planned since July and now live on mainnet, is a meaningful protocol upgrade that cuts on chain storage costs by up to 90% once fully deployed by November. 

With SOL trading near $104, institutional ETF inflows rising, and a clear technical structure above $98 support, the combination of cheaper network costs and growing demand creates a supportive backdrop. 

Bitrue offers both SOL spot and futures trading for traders looking to position around this upgrade cycle.

FAQ

What Is Solana's Rent Reduction Upgrade?

SIMD-0437 reduces the lamports per byte constant from 6,960 to 696 across five phased steps, cutting the refundable rent deposit required for on chain accounts by 90%.

Is the Rent Reduction Already Live?

Yes, the first step activated on mainnet on 3 September 2026 with a 9% cut, with the second step expected in mid September and the full 90% reduction arriving in November.

Does the Upgrade Reduce Solana Transaction Fees?

No, the upgrade reduces the refundable rent deposit required to create and maintain on chain accounts, not the per transaction fee that users pay for transfers or smart contract execution.

What Is the Current SOL Price?

SOL is trading near $104 on 4 September 2026, with a market capitalisation of approximately $61 billion and a 24 hour trading volume above $4 billion.

Can SOL Reach $120 in September?

If SOL holds above the $98 to $100 support zone, analysts see a path toward $110 and then $120, though prediction markets currently assign roughly 22% probability to a $120 touch this month.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.