Galaxy Digital Swaps $100M ETH for SOL Amid Ethereum Concerns

Galaxy Digital, led by Mike Novogratz, has reportedly exchanged over $100 million worth of Ethereum (ETH) for Solana (SOL), signaling a notable shift in institutional crypto strategy. On-chain data from Wu Blockchain indicates that Galaxy moved 65,600 ETH—around $105 million—to Binance over the past two weeks, while simultaneously withdrawing approximately 752,240 SOL, valued near $98.4 million.

This move follows Standard Chartered’s bearish outlook on Ethereum, labeling it as being in "structural decline." The bank cut its year-end ETH price target, citing a shrinking market cap and declining usage metrics. Arkham Intelligence data shows Galaxy still holds about $87.9 million in ETH versus $23.86 million in SOL, suggesting the firm may be gradually reallocating rather than fully exiting its ETH position.

Market trends support Galaxy’s pivot. While SOL has risen 8% over the past month, ETH has dropped nearly 20%, according to TradingView. Furthermore, Solana is outpacing Ethereum in key metrics. Decentralized exchange volume on Solana exceeded $500 billion in the past three months, compared to Ethereum’s sub-$400 billion. Active addresses on Solana now surpass 220 million, significantly higher than Ethereum’s combined L1 and L2 figure of just over 80 million, as per Dune Analytics.

In contrast, Ethereum ETFs have seen $600 million in outflows recently, reflecting broader investor skepticism. An idea proposed by Tron founder Justin Sun to implement a tax on Layer-2 networks—with proceeds used to buy and burn ETH—has yet to gain traction or be formalized in an Ethereum Improvement Proposal (EIP).

Galaxy Digital has not yet commented on the transaction, but the reallocation highlights growing market momentum behind Solana as Ethereum faces structural and competitive challenges.