Cryptocurrency Solana sees an uptick in value as Galaxy Digital invests more than $700 million in SOL.
In a significant move for the cryptocurrency market, investment firm Galaxy Digital has purchased over $700 million worth of Solana (SOL) within the past two days. This investment makes Galaxy Digital the main sponsor of Forward Industries, a Nasdaq-listed product design company that is using the proceeds to build the world's largest publicly traded Solana treasury.
Forward Industries, which will become the largest Solana treasury provider, has raised a total of $1.65 billion, with Galaxy Digital taking a leading role. The investment is part of a private investment in public equity (PIPE) led by Galaxy Digital, Jump Crypto, and Multicoin Capital.
Galaxy's focus on Solana is seen as a strong signal to other institutions that Solana is investable at scale. Co-founder and CEO of trading platform Rails, Satraj Bambra, believes that Galaxy's purchase "kicks off a flywheel" for SOL's price. Solflare co-CEO and co-founder Vidor Gencel views Galaxy's focus on Solana as a sign that SOL is now being "seriously considered" as a treasury asset for institutions.
Galaxy founder Mike Novogratz described Solana as "uniquely positioned to power the next generation of capital markets" in a tweet announcing its investment. He further affirmed that he's calling the current period "the season of SOL." Novogratz also stated that Solana's blockchain can process "14 billion transactions" per day.
The approval of SOL ETFs, combined with network growth and upgrades, could significantly impact SOL's future. Approaching upgrades such as Firedancer, a new validator client that will boost Solana's throughput and improve network stability, could be a major catalyst.
Bambra suggests that potential Solana ETFs, which are awaiting SEC approval, "could open the floodgates for new demand." He concludes that SOL's long-term success is about usage growth and cementing itself as a top-3 asset.
The investment by Galaxy Digital has had an immediate impact on SOL's value. Solana has seen a 6% increase in the past 24 hours, reaching over $241 for the first time since January. SOL has risen nearly 19% over the last week, making it the second-biggest gainer among the top 10 assets by market cap, behind Dogecoin.
Industry figures agree that Galaxy's new interest in Solana is a positive development. Novogratz referred to SEC Chair Paul Atkins' keynote speech discussing Project Crypto, the agency's push to encourage "our markets to move on-chain." Other industry figures share this optimism, viewing Galaxy's investment as a vote of confidence in Solana's potential.
In conclusion, the investment by Galaxy Digital in Solana and the subsequent creation of the world's largest publicly traded Solana treasury is a significant development for the cryptocurrency market. The potential approval of SOL ETFs, network growth, and upgrades could further boost SOL's value and cement its position as a top-3 asset.
