- Galaxy Digital moved $79.7M in SOL from exchanges.
- $60M worth of SOL was staked, signaling long-term confidence.
- SOL price and trading volume increased after the move.
Galaxy Digital has made a bold move in the crypto world. Over four days, from April 15 to 19, the firm withdrew 606,000 SOL tokens—worth about $79.7 million—from various exchanges. Then, they staked 462,000 of those tokens, locking in approximately $60 million. This isn’t just a routine transaction; it’s a significant show of confidence in Solana’s future.
Strategic Withdrawal and Staking
By pulling such a large amount of SOL off exchanges, Galaxy Digital effectively reduced the immediate supply available for trading. This kind of move can lead to decreased selling pressure, which often supports price increases. In fact, following the initial withdrawal, SOL’s price rose by 2.5% within 24 hours, indicating a positive market reaction.
Staking 462,000 SOL tokens further underscores Galaxy Digital’s commitment to Solana. Staking involves locking up tokens to support the network’s operations, and in return, participants earn rewards. This action suggests that Galaxy Digital sees long-term value in Solana and is willing to commit substantial resources to support and benefit from its ecosystem.
Market Response and Technical Indicators
The crypto market didn’t just respond with a price uptick. Trading volume for SOL on major exchanges like Binance and Coinbase increased by 10% on April 17, following the staking announcement. This surge in activity points to heightened investor interest and confidence. From a technical analysis standpoint, the SOL/USD pair broke above the key resistance level of $130 after Galaxy Digital’s actions.
The Relative Strength Index (RSI) for SOL was at 68, indicating strong bullish momentum without being overbought. Additionally, trading volumes for SOL/BTC and SOL/ETH pairs rose by 8% and 6%, respectively, suggesting broader market interest in Solana across multiple trading pairs. On-chain metrics also reflected increased activity. Data from SolanaFM showed a 5% rise in the number of active addresses on the Solana network within 24 hours of the news.
This uptick indicates growing user engagement and could signal further price appreciation. Galaxy Digital is betting big on Solana’s future. By reducing available supply and increasing network participation, they’re not just observing the market; they’re actively shaping it. This strategic move could very well be a catalyst for Solana’s next significant price movement.
