Wealthy investors purchasing millions worth of this cryptocurrency

The cryptocurrency market experienced another round of volatility last week, with significant fluctuations in prices as traders strategically positioned themselves. Notably, several millionaire investors have amassed large quantities of Solana (SOL) tokens, with their activities being observed on-chain.

Three whale addresses stood out with their significant purchases, followed by staking the tokens to earn passive income, as reported by Lookonchain. These millionaire investors have demonstrated their intention to hold mid- to long-term positions by purchasing, withdrawing to self-custody, and staking SOL.

This behavior deviates from the recent trend, which primarily focused on short-term speculative gains. Many millionaire Solana addresses were using SOL to purchase and speculate on memecoins, which often turned out to be scams, as highlighted by Finbold.

In addition to Lookonchain’s findings, Finbold obtained data from Arkham Intelligence on October 27, further confirming the bullish sentiment among the millionaire Solana investors.

Let’s take a closer look at the activities of these investors:

1. The address ‘AA21BSr(…)’ withdrew 153,511 SOL from Binance over the past six days, amounting to $26.4 million. The millionaire investor then staked most of these holdings through Marinade Finance’s liquid staking, acquiring MSOL tokens.

2. ‘EGzicbS(…)’ added 13,000 SOL to their existing position of 95,651 SOL, totaling $16.83 million. However, this position remained liquid in the native token without staking, allowing for immediate liquidation if desired.

3. ‘EHax4mB(…)’ purchased and withdrew $6.12 million worth of 35,498 SOL from Binance and Kraken within three days. This millionaire investor also opted for Solana’s liquid staking, this time on the Jito Network, acquiring JITOSOL.

Liquid staking is a feature that allows investors to maintain their mid- to long-term investment intentions while also participating in decentralized finance (DeFi) protocols, including yield farming.

Meanwhile, Solana is currently trading at nearly $175 per token, experiencing a seven-month downtrend despite its positive year-to-date (YTD) performance. Overall, SOL has gained 72.66% YTD but has been forming lower highs since March.

Renowned cryptocurrency trader and analyst Alan Santana has taken a short position on SOL, expecting further downside in the market.

These controversial investment decisions and stances are an integral part of the market, with bulls and bears holding their ground. Millionaire investors and traders are now eagerly awaiting the final two months of 2024 to see what lies ahead for Solana and cryptocurrencies as a whole.