In a major boost for the Solana blockchain network, Galaxy staked nearly $3 million worth of SOL to their validator node. This influx of staked assets has catapulted Galaxy to the top spot as the number one validator on Solana, surpassing Coinbase within the next 16 hours. Market experts attribute the abrupt uptick in staking power to the ongoing FTX estate sale. The sale witnessed a substantial amount of assets being liquidated, including holdings of SOL, with Galaxy emerging as a key beneficiary of this redistribution.
Galaxy just got 3M in SOL staked to them — meaning they will become the new 1 validator on Solana in ~16hours, overtaking Coinbase almost certainly due to the FTX estate sale and since they have a 25% MEV fee, they’ll be making 22M yearly (at least) from this
One of the key takeaways of Galaxy’s validator operation is their 25% Maximum Extractable Value [MEV] fee. MEV represents the additional value validators can achieve by optimally ordering transactions within blocks. As per estimates, Galaxy’s potential revenues are a minimum of $22 million yearly from this fee setup. This not only provides a significant revenue stream but further solidifies their footprint within the Solana ecosystem.
A Game-Changer for Solana Validators
The implications of this move extend beyond influence and economic benefits. As the leading validator, Galaxy will play a pivotal role in maintaining the security and efficiency of the Solana network. The earnings from MEV fees will act as a significant boost to their financial standing, allowing them to reinvest in infrastructure and possibly expand their services. In turn, the SOL network stands to benefit from having a prominent and well-resourced entity like Galaxy as its top validator.
For SOL token holders, the increase in staked assets and the involvement of a major player like Galaxy could enhance the network’s security and stability. However, it might also lead to concerns about centralization and the influence of large validators on network governance.