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Canada-based publicly traded investment firm SOL Strategies Inc. (formerly known as Cypherpunk Holdings) continues to strengthen its position in the Solana ecosystem. The company recently announced that it has fully deployed the initial $20 million tranche from its $500 million convertible note agreement with ATW Partners to acquire SOL tokens.
SOL Strategies Provides Update on SOL Purchases
As part of this investment, SOL Strategies purchased 122,524 SOL for a total of $18,250,730 USD, at an average price of $148.96 per SOL.
In a statement, the company’s CEO Leah Wald said, “Following the initial $20 million tranche from the ATW facility, we have strategically acquired SOL. These purchases directly support our three-pillar strategy: enterprise-grade validator operations, strategic SOL holdings, and Solana technology innovation.”
SOL Strategies provides infrastructure and investment solutions for decentralized applications (dApps) operating on the Solana network. The company aims to support Solana validators and contribute to the growth of the blockchain ecosystem.
Notable Weakness in Solana Network Activity
While SOL Strategies demonstrates its confidence in Solana, on-chain data reveals that investor interest in the Solana network has been weakening, with a clear decline in transaction activity.
Over the past 24 hours, both the number of daily active addresses and transaction volume have dropped significantly. The active address count fell to 3.2 million, which could indicate several possibilities:
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Investors may have sold their SOL and bridged to other blockchain networks.
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Alternatively, there could be a broader decline in demand for SOL.
Liquidity Outflows from Solana Ecosystem
Liquidity is also flowing out of Solana-based projects. This trend is confirmed by the drop in Total Value Locked (TVL) — a key metric that reflects the amount of SOL staked in the network and the overall health of its ecosystem.
At the beginning of May, TVL was at $8.039 billion, but has since dropped to $7.825 billion.
This implies that roughly $214 million worth of SOL has been unlocked and re-entered the market.
Such large-scale unlocks increase circulating supply and add downward pressure on the SOL price.
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