Galaxy Digital Rotates $100M from Ethereum to Solana Amid Shifting Blockchain Momentum

​Mike Novogratz's Galaxy Digital has executed a significant portfolio shift by exchanging approximately $105 million worth of Ethereum (ETH) for Solana (SOL), as evidenced by on-chain data. This transaction involved transferring 65,600 ETH to Binance and withdrawing 752,240 SOL, valued at around $98.4 million.

Strategic Implications

This move indicates a strategic reallocation, possibly reflecting Galaxy Digital's assessment of Solana's growing prominence in the blockchain ecosystem. Solana has recently surpassed Ethereum in several key metrics:

• Decentralized Exchange (DEX) Volume: Solana's DEX volume exceeded $500 billion, outpacing Ethereum's $400 billion.​

• Active Addresses: Solana boasts over 220 million active addresses, significantly higher than Ethereum's 80 million.​

These figures suggest a robust and expanding user base for Solana, which may have influenced Galaxy Digital's decision.​

Market Performance

In the past month, SOL has appreciated by 8%, while ETH has declined nearly 20%. This divergence in performance could be attributed to Solana's increasing adoption and Ethereum's ongoing scalability challenges.​

Standard Chartered recently described Ethereum as being in "structural decline," citing a reduction in its market capitalization and usage metrics. Galaxy Digital's reallocation aligns with this perspective, potentially signaling a broader institutional shift towards alternative blockchain platforms like Solana.​