Solana Whale Profits $153M, Drives Staking Surge

A Solana whale has made a significant profit of $153 million through a long-term staking strategy, highlighting the growing appeal of the Solana network among high-stakes investors. The whale initially staked 991,079 SOL when the token was valued at around $27, investing nearly $27 million in a long-term yield strategy. Over the course of four years, the whale's staked holdings grew to 1.29 million SOL, with the value of Solana surpassing $140. This brings the whale's total holdings to an estimated value of $180 million. Even after unstaking 100,000 SOL, worth about $13.9 million, and depositing it into Binance, the whale still retains approximately 1.19 million SOL, valued at roughly $166 million.

This event underscores the increasing interest in Solana among high-stakes investors. Earlier this month, four wallets collectively holding $37 million worth of staked tokens since 2021 had their SOL holdings released, which had appreciated to over $206 million by the time of the unlock. Around $50 million of those tokens were sold shortly thereafter, indicating realized profit. This sudden and substantial movement of capital caused Solana to temporarily overtake Ethereum in staking market capitalization on April 20, with Solana claiming over $53 billion in staked value, eclipsing Ethereum. While Ethereum quickly regained its lead, the event was symbolic of Solana’s proof-of-stake mechanism and yield incentives becoming serious competition.

Adding to this shift in sentiment, Galaxy Digital, the crypto-focused firm helmed by Mike Novogratz, has been executing large swaps from ETH to SOL. According to Lookonchain, Galaxy deposited 65,600 ETH, worth over $106 million, to Binance over the past two weeks and withdrew approximately 752,240 SOL, valued at $105 million. These SOL tokens were then distributed to various unidentified wallets. Galaxy’s moves reflect a broader institutional trend, as Ethereum has been struggling with its price down 51.5% year-to-date, and its dominance has slipped to under 7% of the total crypto market cap, a historic low. DeFi activity is also shifting away from Ethereum, with its DEX volume falling sharply to $42.5 billion in March, down from $82.2 billion in January. Meanwhile, Solana is gaining traction as a more affordable, faster alternative, hosting a wide range of active protocols and offering low transaction fees.

Another whale-related development is likely to bode well for Solana's near-term future. Whale Alert flagged a 374,161 SOL, worth $52.7 million, withdrawal from Binance to a private wallet. Exchange outflows of this magnitude typically indicate accumulation, and when executed by high-net-worth investors, often precede price rallies. With Solana now trading around $134, up nearly 4% over the past week, the momentum is holding. The narrative is being rewritten, not just by price action, but by high-stakes players making moves in real-time. As the Ethereum network prepares to deploy its Pectra upgrade on May 7 to enhance scalability and user experience, the network might see a renewed interest. However, the recent developments in Solana's staking ecosystem suggest that the network is becoming an increasingly attractive option for high-stakes investors.