Two major institutional players – SOL Strategies and DeFi Development Corp – recently injected $509.9M combined into their Solana treasury incentives. The investment strategy echoes MicroStrategy, but this time, it’s Solana ($SOL) rather than Bitcoin ($BTC).
These sizable capital inflows into $SOL suggest a bright future for Solaxy, the world’s first Solana Layer-2 (L2) network that’s designed to give the network a leg up during heightened demand.
Its native token, $SOLX (a new meme coin on presale), might even be the catalyst Solana needs to outpace Ethereum in market dominance.
SOL Strategies’ Solana Treasury Grows to $540M+
SOL Strategies currently holds $40.4M worth of $SOL and secured an additional $500M on Wednesday, bringing its total holdings to $540.4M.
Much of this $SOL will be locked into the network. It’ll enhance Solana’s stake participation, boost network security, and lower the token float – each of which could significantly raise the token’s price.
On the same day, DeFi Development Corp purchased $9.9M worth of locked $SOL through BitGo’s over-the-counter desk. While not yet transferable on-chain, the assets were acquired at a discount. This way, the firm was able to expand its long-term Solana treasury to a commendable $48M.
$SOL Jumps 20% as Buying Pressure Heats Up
Supported by these recent institutional inflows and buoyed by favorable market sentiment, $SOL is up by 20% in the past two weeks, outpacing both $BTC and $ETH.
These large-scale capital commitments signal strong confidence in Solana’s long-term potential. Given Ethereum’s lagging performance, some investors and firms even say that $SOL could outperform $ETH as the second-largest crypto.
‘Solana looks to be eating Ethereum’s lunch. As more investors tire of waiting for Ethereum to perform, they’ll likely defect to Solana, and that will increase demand for the coin.’ – Nasdaq.
With $SOL’s Relative Strength Index (RSI) at 66.54, this viewpoint might not be a far cry. The technical indicator reflects intense buying pressure and market confidence as the asset edges close to overbought territory (70).
Solana’s Network Speed Isn’t Without Its Woes
But despite Solana being broadly known for its high speed and low fees, it isn’t immune to a common key vulnerability: Network congestion during peak demand.
As adoption grows, often driven by the best meme coins, DeFi protocols, and – now – major institutional investment, Solana’s throughput might hit its limits (again!).
Look at when Donald and Melania Trump launched their official meme coins – $TRUMP and $MELANIA – in mid-January, for instance. No new transactions were recorded on SolScan for thirty minutes, which highlighted significant network congestion.
Such an incident suggests that Solana needs stronger infrastructure to handle unpredictable traffic surges. Thankfully, Solaxy is being built to solve this problem.
Solaxy to Step In When Solana Stalls
By offloading transactional volume and processing micro-transactions off-chain, Solaxy will prevent congestion-related failures like those seen during the Trump token launches.
Its native token, $SOLX, is the gateway to this upcoming L2 network.
It’ll also enable seamless cross-chain transfers between Solana and Ethereum. This way, you can easily move your assets across two major platforms and gain access to a wider user base.
Consequently, $SOLX is currently one of the best crypto presales to invest in right now, having already attracted over $31.5M.
Beyond its L2 innovation, the $SOLX presale attracts attention with its high-yield staking opportunity, which offers 129% APY. A substantial 25% of the token supply is set aside for such rewards.
Considering that an additional 30% of its supply cap is also allocated for development, sustained growth for the Solaxy ecosystem is in sight.
Buy $SOLX to Help Solana Flip Ethereum
As institutional confidence in Solana grows, and an additional $509.9M pours into Solana treasury incentives, it’s evident that $SOL is becoming a serious contender against $ETH.
However, with greater momentum comes greater demand, and the Solana network has a history of feeling the pressure.
Luckily, this is where Solaxy enters the picture. As the first Solana L2, it could be the gateway to Solana’s long-term resilience and overtaking $ETH in market dominance.
But for Solana to reach this next level, scaling efficiently while maintaining top performance under pressure, supporting the Solaxy ecosystem matters.
To actively participate in the infrastructure that has what it takes to boost Solana’s future, you can buy $SOLX on presale for just $0.001704.
Solaxy’s launch is predicted to push its price to $0.032 by the end of the year, a 17x increase compared to its current value, so there’s no better time to join.
Disclaimer: This is not financial advice. Crypto investments are volatile and carry risks. You should never invest more than you’d be sad to lose.
