Key insights:
- SOL Strategies and DeFi Dev Corp have jointly acquired 200,000 SOL tokens, signaling substantial whale accumulation.
- SOL Strategies purchased 122,524 SOL worth $18.2M as part of its $500M capital deployment plan.
- The firm used a $20M tranche from its ATW convertible note facility to fund this latest acquisition.
Two major Solana whales have expanded their holdings with significant token purchases. SOL Strategies and DeFi Dev Corp jointly acquired 200,000 SOL.
These signals continued substantial accumulation and potential price implications for Solana amid rising trading activity.
SOL Strategies Makes $18M Solana Purchase
SOL Strategies has purchased 122,524 SOL, boosting its Solana ecosystem footprint. At an average price of $148.96, the purchase was valued at $18.2 Million. It is the first of three planned tranches of the $500 million it intends to invest.
The company’s goal is to increase its validator network and deepen its stake in Solana’s infrastructure. It secured the SOL allocation through a recently launched ATW convertible note facility. The $20 Million inaugural release from that facility provided funding for this specific acquisition.
With that move, SOL Strategies now holds a total of 391,782 SOLs, presently valued at just shy of $55.6 Million.
The company’s ambition is to scale further on the back of future tranches from its capital raise. It takes a focused approach to ensure long-term accumulation and operational expansion.
Staking Strategy Drives DeFi Dev Corp Move
Following suit, DeFi Dev Corp bought 82,404 SOL for $11.2 Million. This latest acquisition drops the firm’s holdings to 4,009,091 SOL. The tokens, on the other hand, would be allocated to staking using the firm’s validator infrastructure, the firm confirmed.
The company said these tokens were meant to help sustain the company’s staking operations and strengthen its yield-based offerings. DeFi Dev Corp’s move to follow this trend keeps SOL Strategies in catch-up on acquiring Solana.
Their strategy mimics a tactic of hyper augmentation in the rapidly emerging Solana ecosystem.
The competition for validator stake leads to speculation of a rival of both firms. The companies now have a combined 791,873 SOL. They may grow their influence in Solana’s proof-of-stake (PoS) consensus.
Solana Price Holds Strong Despite Dip
Despite the size of the purchases, there did not appear to be a big immediate reaction in Solana’s market price. According to CoinMarketCap info, SOL is down 2% over the last day and is trading around $143. Nevertheless, gains continue to exceed 24% per month.
The SOL price remains green, with market demand hovering above the $140 level. Daily trading volume went up 18% to $2.41 Billion, suggesting the growing engagement of large and retail holders alike.
Meanwhile, Solana’s network activity is firing on all cylinders, with the Solana-based project, PumpFun, overtaking Ethereum in fee generation. Related to this, we see strong on-chain traction, which could fuel upward momentum.
Despite whales seemingly providing a thorn in the side for crypto enthusiasts and causing pain to early investors, that behavior could also suggest positioning before a larger move, following positive sentiment around broader network usage.
