Galaxy Digital’s Bold Move: $486M Solana Buy Sparks Crypto Market Frenzy!

Galaxy Digital’s $486 Million Solana Bet Sends Ripple Through Crypto and Stock Markets

Galaxy Digital has once again made waves in the cryptocurrency industry, this time with a significant purchase of Solana (SOL) tokens valued at nearly half a billion dollars. The move not only boosted Solana’s price but also sent the company’s shares surging, signaling renewed confidence in both the blockchain network and Galaxy Digital’s broader market strategy.

According to data from blockchain analytics firm Lookonchain, Galaxy Digital acquired a total of 2,159,182 Solana tokens over a 24-hour period, worth approximately $486 million at current market prices. The purchase included 706,790 coins valued at $160 million, transferred from major exchanges such as Binance and Coinbase into Galaxy Digital’s corporate wallets.

Source: X

This aggressive buying spree coincided with a notable 13% surge in Solana’s weekly performance, propelling the token above $230 and underscoring the bullish momentum building around the project.

Why Galaxy Digital is Betting Big on Solana

The purchase is the latest in a series of bold moves by Galaxy Digital, led by its outspoken CEO, Mike Novogratz. Novogratz described this period as the “season of SOL,” pointing to the company’s commitment to Solana as a cornerstone asset in the blockchain ecosystem.

The timing of the acquisition comes on the heels of a $1.65 billion capital infusion into Galaxy Digital’s reserves, providing the firm with fresh firepower to deepen its exposure to high-growth digital assets. By securing a commanding position in Solana, Galaxy Digital is sending a strong signal to the market that institutional appetite for the token remains robust.

Source: CoinGecko

Analysts argue that Solana’s appeal lies in its high throughput, low transaction costs, and expanding ecosystem of decentralized applications. While Ethereum remains the dominant platform for smart contracts, Solana has carved out a reputation as a faster, more scalable alternative—traits that have drawn institutional investors eager to diversify beyond Bitcoin and Ethereum.

Price Impact: SOL Surges Toward $240

Prior to Galaxy Digital’s purchase, Solana was trading near $222. Within hours, the price spiked to $235, and the token has since stabilized around $238.76, according to CoinMarketCap. The buying activity lifted Solana’s 24-hour volume by 34.34% and pushed its total market capitalization to $129.48 billion.

On a weekly basis, Solana has seen a swing from lows of $200 to near $240, adding $40 to its value and reaffirming bullish sentiment across the broader altcoin market. While the token remains below its all-time high of $294, set in January 2025, traders believe the renewed wave of institutional interest could bring Solana closer to retesting that record.

Source: Google

Technical indicators also support the bullish case. The Relative Strength Index (RSI) currently stands at 66.14, suggesting continued momentum without yet breaching overbought territory. The Moving Average Convergence Divergence (MACD) also flashes a bullish signal, pointing to potential further upside in the near term.

Market Positioning: Galaxy Digital Becomes Top Solana Holder

The acquisition propels Galaxy Digital ahead of rivals such as DeFi Development Corp, which previously held the largest Solana stash at 2,027,817 coins. By surpassing that threshold, Galaxy Digital has emerged as the largest institutional holder of Solana, setting the stage for potential competition among other asset managers.

Firms like Upexi, Sharps Technology, Sol Strategies, and Exodus Movement are expected to ramp up their own holdings to maintain relevance, potentially driving further demand and upward pressure on Solana’s price. This dynamic reflects a broader trend of institutional competition in crypto markets, where token accumulation often signals long-term strategic positioning rather than short-term speculation.

Galaxy Digital Shares Rally on Bullish Sentiment

The impact of the Solana purchase extended beyond the crypto market into traditional equities. Galaxy Digital shares closed at $28.87, up 10.7% on the day, before climbing further to $29.51 in after-hours trading.

The stock surge reflects investor confidence in the company’s growth trajectory and its ability to leverage large-scale crypto investments into tangible financial performance. The dual impact—boosting both Solana’s price and Galaxy Digital’s stock—underscores how deeply intertwined digital assets have become with institutional finance.

“The $486 million purchase demonstrates Galaxy Digital’s conviction in Solana’s future and positions the company as a leader in bridging traditional markets with digital assets,” said one market analyst. “It’s a bullish signal not just for SOL but for the broader institutional adoption of blockchain technologies.”

The Bigger Picture: Solana Gains Legitimacy

Beyond Galaxy Digital’s actions, several developments have contributed to Solana’s rising profile. Earlier this month, Sol Strategies became the first Solana-focused company to list on Nasdaq under the ticker STKE, following a $90 million acquisition. The move signaled a growing recognition of Solana as an institutional-grade asset, not just a speculative cryptocurrency.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) is reviewing proposals that could pave the way for Solana-based exchange-traded funds (ETFs). The regulator has hinted at a willingness to approve ETFs for altcoins with at least six months of futures trading history, reducing uncertainty for institutional investors and further legitimizing Solana as a candidate for mainstream financial products.

These structural shifts in how Solana is viewed by regulators and public markets complement Galaxy Digital’s aggressive buying, creating a feedback loop of positive sentiment that could sustain higher valuations over time.

Risks and Questions Ahead

While optimism runs high, challenges remain. Crypto markets are notoriously volatile, and sudden shifts in regulatory tone or broader economic conditions could undermine bullish momentum. Critics caution that large institutional purchases, while supportive in the short term, may also concentrate ownership and reduce decentralization.

Furthermore, Solana’s technical track record has not been spotless. Past outages on the network have raised concerns about long-term reliability, although developers continue to work on upgrades to improve resilience.

Still, most analysts agree that the convergence of institutional investment, regulatory progress, and growing ecosystem adoption makes Solana one of the most promising blockchain projects to watch in 2025.

Price Outlook: Can SOL Reach $250 This Month?

With Galaxy Digital’s purchase setting the tone, traders are eyeing the $250 level as the next key milestone. If bullish momentum holds, experts suggest Solana could hit that target by the end of September. Beyond that, the path toward retesting its all-time high of $294 will depend on whether additional institutional players follow Galaxy Digital’s lead and whether regulatory clarity continues to improve.

Source: CMC

“The combination of rising demand, favorable technicals, and strong institutional backing makes Solana’s near-term trajectory firmly bullish,” noted one industry strategist. “While risks remain, the case for SOL pushing toward $250 is stronger than it has been in months.”

Conclusion

Galaxy Digital’s $486 million bet on Solana has had immediate ripple effects across both crypto and traditional markets. By solidifying its position as the largest institutional holder of SOL, the firm has not only boosted the token’s price but also lifted its own stock value, reinforcing investor confidence in the sector’s long-term growth.

With regulatory momentum, rising institutional interest, and robust technical signals, Solana’s outlook remains strongly bullish. As September unfolds, all eyes will be on whether the token can sustain its momentum and edge closer to reclaiming its record highs.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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