Whales Stack Up on Solana with Solayer Staking: A Strong Signal of Confidence

The cryptocurrency industry offers many attractive strategies for long-term investors, including staking. Staking allows you to earn rewards while you retain ownership of your assets.

This is particularly true on Solayer, a prominent staking platform for Solana ($SOL).

Recently, Solayer experienced a surge of activity from a certain group of investors—whales—who have been directing capital into Solana’s ecosystem. One whale, identified by the address H1zFM…kcEAe, pledged 39,344 $SOL (worth $7.61 million) onto the platform in just the past 24 hours. H1zFM…kcEAe now ranks as the fourth largest individual staker on Solayer.

With the Solana network’s growth, whales are staked on Solana, giving us as investors an appealing sign for our current and potentially future investments in the Solana ecosystem.

Staking with Solana has never had better conditions to attract users in both bear and bull markets. This could be giving us a hint toward what is currently enticing Solana whales to keep existing assets on the platform and what could keep attracting new assets in the future.

Most importantly, Solana has seen some significant rise in the total value locked in staked assets in just the last couple of months.

In the past 24 hours, the whale address H1zFM…kcEAe made a huge move, pledging 39,344 $SOL worth $7.61 million to Solayer. This giant step makes the adress the fourth-largest individual staker on that platform. Solana staking isn’t exactly what you’d call “mainstream,” yet it has begun attracting big fish like our whale here, who presumably is making this kind of bet not so much on Solayer as on Solana itself and the prospect of earning passive income by way of platform rewards and incentives.

Yet H1zFM…kcEAe isn’t the only large Solana whale staking significant sums. The number one individual staker on Solayer, DJyr7…H4A75, committed a staggering 50,000 $SOL ($10.17 million) to the platform around eight months ago. This decision appears to be a good one, as the value of $SOL has risen sharply since then. At present, DJyr7…H4A75 holds a staked $SOL that is worth an impressive $1.094 million more than the same staked $SOL was worth at the time of staking.

Along with the increase in capital value, DJyr7…H4A75 is also set to gain from airdrops of the token $LAYER, which further ramps up its profit-making potential. Airdrops, which deliver tokens to holders of a certain asset, are an increasingly popular incentive for stakers of a protocol who are already receiving reward payments for staking. These just-in-time bonus payments up the ante for staking as a value-accruing mechanism since one never quite knows what might be delivered at the next interval. And for whales like DJyr7…H4A75, this essentially provides new paths to profit.

The amount of value locked up in staked Solana with Solayer has risen sharply and recently hit a milestone of $286 million. This figure indicates a significant and growing interest in staking Solana, from both kinds of investors typically found in crypto (not just whales, but also retail investors). These stakeholders have come to see staking as offering the prospect of regular rewards, not too different in nature from dividends. Beyond that, however, what’s happening here stakes (a pun, intended) well beyond the personal wealth of stakeholders.

The rising total value locked in decentralized finance on Solana suggests that this blockchain is building traction among institutions and high-net-worth individuals, who appear to have confidence in Solana’s long-term potential. Using a platform like Solayer, these investors can’t realize the full market opportunities of Solana’s DeFi protocols, but they can earn income from Solana tokens (as Solayer essentially lets you stake Solana across a number of DeFi apps). Keeping these investors engaged with Solana is a good thing for the Solana ecosystem, as it’s a strong indicator of investor confidence in a market that doesn’t often give off many reassuring signs.

The reasons to stake on Solayer extend beyond the usual justifications of capital appreciation and staking rewards. As an added attraction, Solayer now offers airdrops of $LAYER, a new governance token for its platform. This should be particularly appealing to those who already reside in the Solana ecosystem. Who knows? Those airdrops could provide Stakers with the necessary tokens to convert Solayer into a self-governing smart-contract entity. And if they don’t do that, we’re still left with the prospect of seeing Solayer Stakers receive a nice sum of money for returning to the parallel simulation of reality known as the LAMA universe.

There are a few things pulling whales toward Solayer. For one, Solana is experiencing a phenomenal uptick in the growth of its ecosystem, and this looks set to continue. It seems that this growth is not just an anomaly; it is happening for solid reasons. These reasons break down mainly into three categories: (1) Solana’s scalability; (2) Solana’s low transaction costs; and (3) Solana’s fast transaction speeds. Hearing talk of these three things, developers, application creators, and even individual investors seem to have been attracted to the Solana blockchain. As an investment vehicle, Solana’s long-term success looks solid.

In addition, Solayer provides a smooth and straightforward staking experience that offers competitive yields and allows Solana investors to easily participate in network staking. The platform’s total value locked reflects a growing appeal among retail and institutional investors to use Solayer as a staking destination. Those who use Solayer to stake Solana reliably will know that they are “securing the network” and that they stand to benefit from a set of very appealing staking incentives.

Ultimately, behemoths of the blockchain like whales may be attracted to Solayer because of benefits like the airdrops of $LAYER. Airdrops and other added incentive mechanisms are just that: mechanisms to attract and retain users and investors. For high-profile investors like DJyr7…H4A75, who have pledged large amounts of $SOL to the Solayer platform, these airdrops could result in substantial additional returns—returns we might reasonably label as profits.

Whales showing rising interest in Solayer staking serves to make investors that may still be on the fence about Solana feel more confident committing funds to $SOL. Notable whales like H1zFM…kcEAe and DJyr7…H4A75 have poured millions upon millions of dollars into staking on the platform. Meanwhile, Solayer staking’s total value locked keeps climbing, and the staking operation keeps on doing what it was built to do: pay out rewards. If you are an investor or would-be investor in the Solana ecosystem, these facts are hard to ignore.

Whale participation will almost certainly increase in Solayer as Solana’s ecosystem keeps developing and inching toward mainstream adoption—this means that total value locked in (TVL) should keep growing. Even without any additional whale backing, though, Solayer’s current design seems to have stakers on a path toward receiving more rewards with the potential for even greater returns.

With powerful support from whales and an expanding user base, Solayer looks well on its way to remaining a core service for staking in the Solana ecosystem, putting it in a place where it could thrive over the next few years.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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