Michael Novogratz’s digital bank Galaxy Digital is on track to become the leading validator in the Solana network, overtaking Coinbase as the largest validator.
This development, first highlighted by Helius CEO Mert Mumtazin in a recent social media post, represents a significant shift in the blockchain validation landscape.
According to Mumtaz, Galaxy Digital recently added 3 million SOL tokens staked to their validator, and this will propel them to the top position within approximately 16 hours of his post. He attributes this to the FTX estate sale and notes that with a 25% MEV fee, Galaxy Digital stands to earn at least $22 million annually from this position.
Data from Solana Beach currently shows Galaxy Digital in second place, behind Coinbase on the list of SOL staked, with 9.7 million SOL tokens staked.
Mumtaz predicts they will overtake Coinbase by June 22.
The exact amount of SOL tokens held by Galaxy Digital remains unclear, but reports suggest they were among the first buyers in the FTX locked SOL auction, and might have acquired 9,687,500 SOL tokens valued at approximately $1.3 billion.
This move comes amid growing interest in Solana from major players in the crypto space. Pantera Capital, another participant in the SOL auction, recently tipped Solana to become Ethereum’s biggest rival. In a recent newsletter to investors, the firm suggested that Ethereum’s dominance may be waning and Solana is emerging as a contender capable of rivalling Ethereum’s supremacy in the blockchain arena.
Pantera highlighted Solana’s unique design, which allows for a wide range of uses and user experiences that might be harder to achieve on other blockchains. The firm also praised Solana’s fast and low-cost transactions, indicating a potential shift towards a more multipolar blockchain ecosystem.
READ MORE: Pantera Capital Backs Solana to Rival Ethereum Amid Market Shifts
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