22-4-2025 – Galaxy Digital, helmed by Mike Novogratz, has executed a substantial digital asset transition, converting ETH holdings valued at $100 million into Solana’s SOL tokens.
The strategic manoeuvre, initially reported by Wu Blockchain through on-chain analysis, reveals Galaxy’s decisive shift from Ethereum to Solana over a fortnight period. The firm channelled 65,600 ETH through Binance, subsequently acquiring 752,240 SOL tokens.
Standard Chartered’s recent market analysis paints a challenging picture for Ethereum, citing persistent structural weaknesses, which may have influenced Galaxy’s investment pivot. Current portfolio metrics from Arkham indicate Galaxy’s holdings comprise $87.9 million in ETH alongside $23.86 million in SOL.
The contrasting performance of these digital assets is stark, with Solana demonstrating an 8% appreciation whilst Ethereum experienced a substantial 20% decline over the past month. Blockchain analytics underscore this divergence, with Solana’s network activity significantly outpacing Ethereum’s metrics.
Particularly noteworthy is Solana’s decentralised exchange (DEX) performance, which has surpassed $500 billion in quarterly volume, eclipsing Ethereum’s sub-$400 billion figure. The disparity extends to user engagement, with Solana boasting over 220 million active addresses compared to Ethereum’s combined Layer-1 and Layer-2 figure of approximately 80 million.
Standard Chartered’s analysis suggests Base’s impact has resulted in significant market capitalisation erosion, though they maintain that real-world asset tokenisation could provide stabilising effects for Ethereum’s ecosystem.
Amidst these developments, Tron founder Justin Sun has proposed implementing a Layer-2 taxation mechanism, with proceeds earmarked for ETH buybacks and burning. However, this concept remains in its infancy, awaiting formal consideration through the Ethereum Improvement Proposal framework.
The institutional investment landscape reflects growing uncertainty, with Ether ETFs experiencing substantial outflows approaching $600 million over the previous two months. Galaxy Digital declined to provide immediate commentary when approached.