Galaxy Digital, the digital bank founded by Michael Novogratz, is poised to become the largest validator in the Solana network.
Galaxy Digital, a global crypto-focused financial services firm founded by Bitcoin bull Michael Novogratz, is set to surpass Coinbase as the largest validator in the Solana network, marking a significant milestone in the competitive world of blockchain validation.
Galaxy just got 3M in SOL staked to them — meaning they will become the new #1 validator on Solana in ~16hours, overtaking Coinbase
almost certainly due to the FTX estate sale
and since they have a 25% MEV fee, they’ll be making 22M yearly (at least) from this pic.twitter.com/Lsa88HOFM9
— mert | helius | hSOL (@0xMert_) June 20, 2024
As first noted by Helius CEO Mert Mumtaz, Galaxy Digital will become the biggest Solana’s validator “almost certainly due to the FTX estate sale,” after reports emerged saying the FTX estate sold between 25 million and 30 million locked-up SOL coins at $64 apiece.
According to data from Solana Beach, Galaxy Digital currently ranks second to Coinbase with 9.7 million SOL tokens staked. Mumtaz forecasts Galaxy Digital to surpass the public crypto exchange by Jun. 22, noting Galaxy is poised to make annually $22 million from staking fees alone.
It’s unclear how much exactly Galaxy Digital holds in SOL tokens. According to a Bloomberg report, Novogratz’s Galaxy was also among the first auction buyers of FTX’s locked SOL and bought tokens on behalf of investors for a special-purpose fund that secured about $620 million. Forbes suggests Galaxy might have ended up with 9,687,500 SOL tokens, worth around $1.3 billion at current market prices.
Pantera Capital, which also participated in the bid, is now demonstrating bullish sentiment towards Solana, noting its potential to challenge Ethereum’s dominance in the blockchain ecosystem. In a recent newsletter, the Menlo Park-headquartered firm highlighted Solana’s rise as a significant development, pointing to its substantial growth over the past year and positioning it within a multi-polar model of blockchain platforms.
