Celestia
Pearl
Quantus
Zcash
Hyperliquid
Aerodrome Finance
NEAR Protocol
Key Insights:
- Galaxy Digital moves 500,000 SOL to Coinbase
- The total number of onchain traders on Solana has decreased by 90%
- Analyst forecasts SOL to hit $1,000, fueled by the next altcoin season
Galaxy Digital has continued with its Solana (SOL) transfer to the U.S.-based Coinbase crypto exchange.
Over the past 5 days, Galaxy has deposited 500,000 SOL coins to Coinbase, sparking selloff concerns among market participants.
Alongside this transfer, the total number of onchain traders on Solana has plunged significantly. Still, optimism about a SOL rally is high, fueled by the upcoming altcoin season.
Galaxy Digital Moves $103M Worth of Solana
Data analytics provider Lookonchain spotlighted the huge SOL transfers from Galaxy Digital, a major crypto investment firm founded by Mike Novogratz.
According to Lookonchin, Galaxy Digital deposited 500,000 SOL, valued at approximately $103 million, into Coinbase over the past 5 days.
This is based on on-chain data from the tracking tool, Arkham Intelligence. It shows these transfers occurred in multiple tranches, ranging from 20,000 to 80,000 SOL per transaction.
Despite these transfers, Galaxy still holds 2,031 SOL tokens worth about $401,000. The company also holds other digital assets, including PYUSD, POPCAT, JTO, USDT, and Helium tokens.
Meanwhile, the 500,000 SOL transfer to Coinbase has ignited speculations about potential selling pressure. Market participants claim Galaxy Digital is repositioning to accumulate large profits.
However, such large transfers may suggest that institutions are managing liquidity or repositioning assets.
In the current context, the 500,000 SOL transfer could be part of a broader strategy rather than outright dumping. The exchange deposits coincide with reports that Galaxy is building a $1 billion Solana treasury.
If completed, the treasury would make Galaxy one of the largest global SOL holders.
According to a Bloomberg report, Galaxy plans to launch the SOL treasury together with Jump Crypto and Multicoin Capital. The trio seeks to acquire a publicly traded company and turn it into a digital asset treasury company.
SOL Onchain Traders Plunge 90%
Coinciding with the Galaxy transfers is a massive decline in the total number of on-chain traders on Solana.
Notably, onchain traders on Solana have dropped by about 90% from their peak in late 2024.
Data from analytics platform Dune shows daily DEX traders dropped from over 8 million in January 2025 to under 2 million by late August.
The decline is attributed to factors like a reduced interest in Solana-based memecoins.
The Solana ecosystem experienced a massive growth in 2024, and early this year, with memecoin frenzies in tokens like BONK and WIF.
However, many projects ended in rug pulls or losses, leading to a reduced retail interest. In April, Pump.fun’s $9.3 million exit also sparked short-term concerns about market stability.
Moreover, Hyperliquid recently surpassed Solana as the on-chain trading leader.
While the 90% trader drop and Galaxy deposits paint a bearish picture, positives like an incoming memecoin frenzy and upgrades support recovery potential.
The Altcoin Season Case for Solana
Popular Bitcoin trader known as That Martini Guy on X has predicted that SOL could hit a high of $1,000. This projection is based on expectations of the next altcoin season.
That Martini Guy illustrated a sequential model of capital rotation in the crypto market, starting from Bitcoin (BTC) dominance.
The illustration then progressed through Ethereum (ETH), large-cap coins, and eventually large-cap altcoins like Solana.
The analyst claims Ethereum is expected to experience a massive price surge, which will then catalyze an altcoin season.
Currently, SOL is valued at $200.6, demonstrating a minimal increase of 0.8% over the past 24 hours. Over the past week and month, SOL has surged 6.9% and 24.6%, respectively.
In a similar move, ETH has surged 24.5% over the past month.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
