Novogratz’s Galaxy Digital set to overtake Coinbase as largest Solana validator

Galaxy Digital, the digital bank founded by Michael Novogratz, is set to become the largest validator on the Solana network.

Galaxy Digital, a global crypto-focused financial services company founded by Bitcoin bull Michael Novogratz, has surpassed Coinbase as the largest validator on the Solana network, marking a major milestone in the competitive world of blockchain verification.

Galaxy just bought 3 million shares in SOL; This means they will overtake Coinbase to become the #1 validator on Solana in ~16 hours

almost certainly due to the FTX estate sale

and since they have a 25% MEV fee, they will make (at least) 22 million per year from this pic.twitter.com/Lsa88HOFM9

— mert | Helius | hSOL (@0xMert_) June 20, 2024

Galaxy Digital is Solana’s largest validator, “almost certainly due to the sale of the FTX estate,” after reports emerged saying the FTX estate had sold between 25 million and 30 million locked SOL coins at $64 each, as first stated by Helius CEO Mert Mumtaz will be. .

Galaxy Digital currently has 9.7 million SOL tokens staked, ranking second after Coinbase, according to data from Solana Beach. Mumtaz predicts that Galaxy Digital will overtake the public crypto exchange by June 22, stating that Galaxy is poised to earn $22 million annually from staking fees alone.

It’s unclear exactly how much Galaxy Digital holds in SOL tokens. According to a Bloomberg report, Novogratz’s Galaxy was among the first auction buyers of FTX’s locked SOL, purchasing the tokens on behalf of investors for a special purpose fund worth approximately $620 million. Forbes suggests that Galaxy may have acquired 9,687,500 SOL tokens, worth approximately $1.3 billion at current market prices.

Pantera Capital, which participated in the bidding, is also now bullish on Solana, noting its potential to challenge Ethereum’s dominance in the blockchain ecosystem. In a recent newsletter, the Menlo Park-based firm highlighted Solana’s rise as a significant development, pointing to significant growth over the past year and positioning it within a multi-polar model of blockchain platforms.