Galaxy Digital, the digital bank founded by Michael Novogratz, is set to become the largest validator in the Solana network.

Galaxy Digital, a global crypto-focused financial services firm, is on track to surpass Coinbase as the top validator in the Solana network. This development marks a significant milestone in the competitive world of blockchain validation.

Recently, Galaxy Digital received an additional 3 million SOL staked to them, positioning them to become the new number one validator on Solana in approximately 16 hours, overtaking Coinbase. This shift is largely attributed to the FTX estate sale. With a 25% MEV fee, Galaxy Digital stands to earn at least $22 million annually from this staking.

As noted by Helius CEO Mert Mumtaz, Galaxy Digital’s rise to the top is almost certainly due to the FTX estate sale, which involved the sale of between 25 million and 30 million locked-up SOL coins at $64 each.

According to data from Solana Beach, Galaxy Digital currently holds the second position behind Coinbase, with 9.7 million SOL tokens staked. Mumtaz predicts that Galaxy Digital will surpass Coinbase by June 22, estimating an annual revenue of $22 million from staking fees alone.

While the precise amount of SOL tokens held by Galaxy Digital remains unclear, a Bloomberg report indicates that Novogratz’s Galaxy was among the first to buy FTX’s locked SOL tokens, securing approximately $620 million worth of tokens for a special-purpose fund. Forbes suggests Galaxy Digital might have ended up with 9,687,500 SOL tokens, valued at around $1.3 billion at current market prices.

Pantera Capital, which also participated in the bidding, has shown bullish sentiment towards Solana, highlighting its potential to challenge Ethereum’s dominance in the blockchain ecosystem. In a recent newsletter, the Menlo Park-headquartered firm emphasized Solana’s substantial growth over the past year and its significant role within a multi-polar model of blockchain platforms.

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