SPX6900 surges 12%, but SPX’s latest rally looks short-lived – Why?

Highlights: Three firms are planning a $1B Solana treasury to create one of the largest single-asset crypto funds. The proposal, if implemented, could influence the price and liquidity of Solana. Corporate treasuries are expanding beyond Bitcoin and Ethereum, with Solana gaining ground among major institutional players. Galaxy Digital, Jump Crypto, and Multicoin Capital are raising $1 billion to create a large Solana-focused treasury, according to a Bloomberg report. The three firms are holding talks with investors while working on plans to acquire a publicly traded company. They intend to transform the acquired entity into a digital asset treasury business dedicated to Solana. This approach would allow the firms to consolidate resources and create one of the largest single-asset treasuries in the market. According to Bloomberg, Galaxy Digital, Multicoin Capital, and Jump Crypto are in talks with potential backers to raise about $1 billion to acquire Solana (SOL), which would mark the largest treasury dedicated to the token. Cantor Fitzgerald is acting as the lead banker for the… pic.twitter.com/jz8CsmTZTe — Wu Blockchain (@WuBlockchain) August 25, 2025 Cantor Fitzgerald is acting as the lead banker for the transaction. The deal is expected to close in early September, giving the group a short timeline for execution. Market observers see the proposed fund as an extension of strategies pioneered by corporate treasuries that first concentrated on Bitcoin. While many firms still favor Bitcoin and Ethereum, Galaxy, Jump, and Multicoin are focusing on Solana because of its rapid growth and expanding use cases. This coordinated initiative signals growing institutional interest in digital assets outside the two dominant cryptocurrencies. Analysts argue that the new raise of $1 billion is a testament to the belief in the potential of Solana remaining one of the top blockchain networks. Institutional Interest Builds Around Solana Treasury The Solana Foundation has already supported the plan, which lends credence to the campaign. Market analysts believe that creating an exclusive treasury would aid in decreasing the circulating supply of Solana. Nick Ruck, director at LVRG Research, said that institutional support of this scale could attract more developers and ecosystem projects. This strategy mirrors a trend among corporate treasuries. MicroStrategy made the idea of owning Bitcoin popular among many businesses, but firms rapidly diversified into Solana, BNB, and XRP. Publicly traded companies currently possess over 6 million SOL, as per available data. One such project is Upexi, which has obtained a $200 million credit line to expand its Solana reserves. SOL Strategies holds more than 420,000 Solana tokens in its treasury and is preparing for a Nasdaq listing. JUST IN: Solana treasury company @UpexiTreasury has surpassed 2 million $SOL in holdings, now worth $334M. In July, Upexi raised $200M and acquired over 1.26M $SOL, growing its treasury by 172%. pic.twitter.com/2DHwTOfOXF — SolanaFloor (@SolanaFloor) August 5, 2025 Solana has gained popularity owing to its scalability, low fees, and speed. It powers a wide range of decentralized finance platforms, gaming projects, and consumer-facing applications. The network also gained traction during last year’s surge in memecoin trading. As a result, institutional players are taking notice, and they now view Solana as a strong alternative to Ethereum. Market Implications and Price Trends The proposed treasury could influence the trajectory of SOL’s price. Meanwhile, none of the companies have confirmed the plans as of press time. At the same time, Solana’s price action has shown strong momentum. SOL is trading at $199.42 after dropping 4.16% in the past day. The trading volume has increased by 997.33% to $13.46 billion, signaling robust activity. Its market capitalization stands at $107.77 billion, and it has gained 10.45% in the past week and 5.49% in the past month. Source: CoinMarketCap eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Quick HighlightsFOCIL aims to prevent an oligopoly of Ethereum validators.Critics fear legal risks for U.S. validators under FOCIL.Buterin's vision: Ethereum as a neutral ”dumb pipe” free from control.Ethereum's New Proposal: Vitalik Buterin Defends EIP-7805 Against CriticismEthereum co-founder Vitalik Buterin responded to criticism of the EIP-7805 (FOCIL) mechanism, a proposal designed to ensure Ethereum's first level (L1) remains a neutral network. This mechanism is intended to prevent the formation of an oligopoly among builders, preserving Ethereum's decentralized nature.The EIP-7805 proposal was brought to light by user Amin Soleimani. It’s important to note that Buterin himself is the author of the FOCIL concept, which was submitted for consideration in November 2024. Although the proposal is still in draft status and awaiting approval, it has already stirred significant controversy.FOCIL, aimed at combating Ethereum’s centralization, involves introducing 16 additional validators per slot. One validator would have the authority to determine the order of transactions, although all proposed transfers would still be included in the block.But Soleimani voiced concerns about the potential risks this could bring to validators, arguing that the implementation of this mechanism would increase legal liabilities, particularly for those operating in the U.S. Ethereum’s anti-censorship measures have so far allowed node operators to avoid the inclusion of transactions involving sanctioned services like Tornado Cash, only delaying their processing rather than excluding them entirely.Is Ethereum's Neutrality at Risk with FOCIL? The Legal Debate ExplainedSoleimani argued that under FOCIL, validators would no longer be able to filter out transactions from sanctioned services. He expressed concern that this could expose U.S. validators to legal risks. Soleimani noted:”If I were the U.S. government, I would 100% support FOCIL. It means I can arrest any U.S. validator, confiscate their assets, and prosecute them for violating sanctions.”Buterin responded to these criticisms by emphasizing that the goal of FOCIL was to protect Ethereum's L1 status as a ”dumb pipe” — a neutral network that only transmits data without controlling it.Buterin’s Vision: Why Ethereum Must Stay a ‘Dumb Pipe’Buterin firmly believes that forcing validators to include sanctioned transactions is necessary for Ethereum's long-term health. He stressed that Ethereum's L1 must remain neutral, free from interference by any single entity, including validators. This neutrality is achieved by introducing several safeguards:Ensuring the mempool is stable and functional for simple block creation.Creating non-protocol technologies for distributed block construction.Establishing multiple channels to enable transactions.FOCIL is one of the latest mechanisms to achieve these goals. Buterin argues that it provides benefits to both validators and attesters, making the latter's work simpler from a technical standpoint.Can FOCIL Secure Ethereum’s Decentralized Future?With the potential adoption of EIP-7701, Buterin envisions expanding FOCIL’s capabilities to further eliminate centralized intermediaries. The ultimate goal is to prevent an oligopoly of validators from gaining veto power over which transactions get included in blocks.In response, Soleimani emphasized that Ethereum was never intended to be a “passive channel.” For him, Buterin’s vision of Ethereum as a neutral pipe is an ideal that fails to reflect the reality of Ethereum’s current status.