- Galaxy Digital unstakes 250,000 Solana worth $40.7M and sends to Binance
- Network has hit record 1,318 TPS and highest TVL in 3 years
- Hyperliquid DEX captures trading volume from Solana’s perpetuals market
Solana faces a paradox as network usage hits all-time highs while major holders quietly exit their positions.
The blockchain recorded its strongest monthly non-voted transaction volume in July, with true transactions per second averaging 1,318, yet whale selling pressure continues mounting.
On August 6, Galaxy Digital unstaked 250,000 SOL tokens, worth $40.7 million, and moved them to Binance. A previously inactive address that unstaked $4.9 million worth of SOL after two months of dormancy is one example of more whale activity.
Exit of Large Holders Despite TVL Growth
Solana’s Total Value Locked in native SOL terms has increased to its greatest level in more over three years, according to DeFiLlama data. Within the DeFi ecosystem, this measure shows increasing protocol stickiness and user retention.
After four years of steady staking, another recorded whale has transferred over $30 million in SOL to Binance in recent months. The address continues to reduce the size of its position by incremental liquidation, while maintaining $179 million in staked SOL.
The disconnect between network fundamentals and holder behavior suggests different priorities between users seeking utility and investors evaluating price performance. While transaction volume and TVL grow, major stakeholders are taking profits or reducing risk exposure.
Hyperliquid Competition Pressures Solana’s Position
Solana’s price performance lags behind major cryptocurrencies with a 30% year-to-date decline compared to Bitcoin’s 26% gain and XRP’s 48% increase. The underperformance occurs despite strong network metrics and ecosystem development.
Hyperliquid DEX has captured trading volume from Solana’s perpetuals market by offering streamlined functionality that appeals to power users. Matthew Sigel from VanEck noted that Hyperliquid’s simple, highly functional product attracted users previously committed to Solana-based trading.
The competitive pressure from specialized platforms highlights challenges facing general-purpose blockchains trying to maintain dominance across multiple use cases. Solana must balance broad utility with specialized performance in specific verticals.
Firedancer, the high-performance client designed to improve throughput and reliability, has failed to meet delivery deadlines. Internal development issues, including developer departures and public disputes, have created uncertainty about the project’s timeline.
Sigel suggested that technical roadmap uncertainty contributes to whale rotation patterns, as institutional investors prefer predictable development schedules. The engineering challenges contrast with Solana’s operational success in processing transactions.
