Solana is back in the spotlight, frequenting news cycles in a way it hasn’t since the FTX collapse.
This renewed interest appears to be stemming from several places:
• Institutional investors like Galaxy Digital are significantly increasing their exposure to the network’s native SOL token (as seen in the next section).
• Various cross-chain metrics suggest Solana is gaining momentum again after a tough 2023, with Ethereum-based projects like Aave and Curve having migrated to the Solana blockchain as of just this past week.
Solana’s decentralized apps (dApps) are raking in the revenues, and its native token is being diligently traded by whales. All’s well in Solana City, and there’s a good chance we’re heading toward a Solana future.
For the Solana Layer-1 blockchain, all signs and portents right now point to an increase in user demand for its high-throughput trading capabilities.
Galaxy Digital Adds $95M in $SOL Amid Growing Institutional Demand
The digital asset investment firm, Galaxy Digital, which is led by Mike Novogratz, seems to be confidently betting on Solana. Just in the past week, the firm has taken off from centralized exchanges about $95 million worth of $SOL, and in the same week, has also taken off from centralized exchanges approximately $40 million worth of $MATIC.
Mathematics is not a betting firm. It is a digital asset investment intelligence firm, and its calculations are made with an eye on the coming years, if not decades.
The latest development is that Galaxy has taken yet another 123,058 $SOL (worth $17.1 million) from Binance, bringing their total even higher. In fact, this suggests that they see Solana’s ecosystem as something they might derive “long-term” value from—even if the rest of the crypto market remains buffeted by volatility and all the usual macroeconomic uncertainties.
The withdrawals’ timing is noteworthy. With Solana priced approximately at $141 during the most recent transaction, it’s clear that Galaxy is investing with serious intent, even as values near the top of the chart for this year. When a respected institution trades like this, it sends a strong message to the rest of the market.
Whale Returns to Solana After Strategic $USDC Exit
It is not only institutional investors that are confident. One significant stakeholder also made waves when it withdrew 374,161 SOL—worth about $52.78 million—from Binance at around the $141 price point. This was not long after that same stakeholder exited a large position by selling 451,594 SOL for about $51.86 million in USDC at around $115 between April 9 and April 13.
This sequence of events denotes a clear and copacetic trading strategy: offload large amounts of an asset at what appears to be a local price peak, and then reaccumulate that same asset at a price that is clearly much lower and likely to rise again soon.
The first part of the sequence suggests that the Solana whale is too smart to sell at anything other than a local price peak possibility. While the price is at it, the whale is likely out of the market until he or she sees signs that the price has begun to rise again after having dropped from local peak to local trough.
Over $100M Bridged to Solana as dApp Revenue Soars
Solana isn’t just rising because investors are interested; it’s also rising because people are using it. In the past week, over $100 million has been crossed to the Solana network from other chains. Of that, more than $50 million came directly from Ethereum, which is notable in itself—but in the last week, Solana has been seeing more than $10 million a day crossed over from Ethereum.
Bridged asset supply is nevertheless surging, and the Solana dApp performance is a big reason why. The most significant driver of revenue has been @pumpdotfun, which has managed to reel in an astonishing $12.57 million over the past week. @AxiomExchange is producing similar performance just slightly behind, raking in $8.48 million. And @JupiterExchange continues to churn out appearances in our revenue top three, this time with $4.24 million that puts it in third place.
These numbers show not just how users are engaging with Solana but how they’re really doing things that matter economically and happening right on its blockchain. What we see here is the ecosystem bubbling along and doing things together that are mostly legal, for the most part (LOL), and economically productive. This is not an accident.
Looking Ahead
The gathering together of whales, the buying of institutions, and the increasing on-chain revenues all seem to conspire to create what’s called a Solana hate.
Although the market keeps evolving, it promises continued momentum for Solana, which appears not only to be surviving the multichain race but also seems to be leading it. With Galaxy Digital, Solana whales, and a vigorous user base behind it, the network seems primed for another leg up in the months to come.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Will Izuchukwu