Whale Purchases Fuel SOL Treasuries as Solana TVL Hits $12.5B (2025-09-12 Update)

• Why Are Whales Gobbling Up SOL Tokens?
• How Galaxy Digital Became SOL's Biggest Buyer
• The Treasury Effect on Solana's Ecosystem
• What This Means for SOL's Price Action
• FAQs About SOL's Treasury Boom

Solana (SOL) is witnessing a surge in institutional demand as major players like Galaxy Digital and BitMining aggressively accumulate SOL tokens, channeling them into growing treasuries. This buying spree coincides with Solana's Total Value Locked (TVL) reaching a new all-time high of $12.52 billion, fueled by expanding DeFi activity and stablecoin inflows. The trend highlights how institutional participation is reshaping Solana's ecosystem, with treasuries now holding about 1.2% of SOL's circulating supply.

Why Are Whales Gobbling Up SOL Tokens?

The past 24 hours have seen remarkable SOL accumulation by institutional players. Galaxy Digital, the digital asset infrastructure giant, withdrew 430,000 SOL ($97M) from Binance in a single hour. This followed another massive purchase of 439,233 SOL ($99M+) from Coinbase Institutional. What's driving this frenzy? Primarily demand from SOL treasuries - specialized vehicles that lock up tokens for staking and ecosystem participation.

How Galaxy Digital Became SOL's Biggest Buyer

Galaxy Digital has emerged as a central player in SOL's institutional adoption story. The firm isn't just buying for its own books - it's serving as an acquisition hub for multiple treasury projects. Our analysis of Arkham Intelligence data shows Galaxy is actively supplying SOL to:

• Multicoin's $1B+ SOL reserve
• Forward Industries' planned $1.65B treasury
• Various decentralized autonomous treasuries (DATs)

"In my experience, when you see this scale of coordinated accumulation, it typically precedes major ecosystem developments," notes a BTCC market analyst. Galaxy reportedly has $354M in stablecoins ready for deployment, plus $1B in cash reserves earmarked for SOL purchases in coming weeks.

The Treasury Effect on Solana's Ecosystem

These institutional flows are creating measurable impacts across Solana's network:

Smaller public companies are joining the trend too. BitMining recently added 17,221 SOL to its holdings, building a 44,000 SOL treasury worth about $9.95M. While modest compared to Galaxy's moves, it shows how the treasury model is spreading across market segments.

What This Means for SOL's Price Action

The concentrated buying has provided notable support at the $227 level, though some traders wonder if the treasury model simply delays sell pressure rather than eliminating it. Most treasury SOL appears destined for staking - either directly with validators or through liquid staking tokens like JitoSOL.

Interestingly, the treasury movement coincides with solana becoming a stablecoin powerhouse. The network now hosts $12.32B in stablecoins, with $1.5B in USDC minted just last month. This dual growth - in both volatile and stable assets - suggests Solana is maturing into a full-spectrum financial ecosystem.

FAQs About SOL's Treasury Boom

Why are institutions creating SOL treasuries now?

The timing relates to Solana's growing institutional acceptance and the development of sophisticated treasury management tools on-chain. Projects want skin in the game as Solana's DeFi ecosystem matures.

How does this differ from Ethereum's institutional adoption?

Solana's approach is more concentrated, with large dedicated treasury vehicles rather than the scattered institutional holdings we see in ETH. The staking mechanics also differ significantly.

Could this treasury model create supply shocks?

Potentially. With 1.2% of supply already locked in treasuries and more forming, we could see reduced circulating supply - though liquid staking tokens help maintain market liquidity.

What's Galaxy Digital's endgame with SOL?

They appear to be positioning as the go-to institutional gateway for Solana exposure, similar to their historical role with bitcoin and Ethereum.