The cryptocurrency landscape is undergoing a pivotal transformation, and recent moves by Galaxy Digital—a leading financial services firm focused on digital assets—have sent shockwaves across the market. In a strategic realignment, the company has sold off a massive position in Ethereum (ETH) while significantly increasing its holdings in Solana (SOL), signaling a potential shift in institutional confidence.
This article explores the implications of Galaxy Digital’s portfolio restructuring, the declining dominance of Ethereum, and the rising momentum behind Solana as a competitive blockchain platform.
Major Portfolio Shift: From ETH to SOL
Galaxy Digital recently executed one of the most significant asset swaps in recent crypto history. According to on-chain analytics from Lookonchain and data aggregated via Arkham Intelligence, the firm sold approximately 65,600 ETH, valued at $10.6 billion**, and acquired **752,240 SOL tokens**, worth around **$10.5 billion. These transactions were facilitated through Binance’s institutional brokerage service, highlighting the growing role of centralized platforms in large-scale crypto trading.
Following the trade, Galaxy Digital’s wallet now holds roughly 55,760 ETH (about $90.5 million) and **171,315 SOL** (approximately $23.9 million). Notably, portions of these assets were transferred to unidentified external addresses—suggesting long-term storage or strategic deployment outside of exchange ecosystems.
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Ethereum’s Declining Dominance Reaches Historic Lows
At the heart of this shift lies a broader trend: Ethereum’s diminishing market dominance. ETH’s share of the total cryptocurrency market cap has dropped below 7%, marking an all-time low. Since the beginning of 2025, its dominance has eroded by over 43%, reflecting waning investor appetite amid increased competition and scalability challenges.
In parallel, Ethereum’s price has declined by more than 51% year-to-date. While it currently trades around $1,633.85—with a modest 0.70% gain over the past 24 hours—the overall trajectory remains bearish compared to previous highs.
Further compounding the issue, institutional Ethereum funds have experienced eight consecutive weeks of net outflows, totaling over $909 million. This sustained withdrawal suggests that even traditional finance players are reevaluating their exposure to ETH-based products.
Additionally, activity on Ethereum’s decentralized exchanges (DEXs) has sharply declined. Per DefiLlama data, DEX trading volume on Ethereum plummeted from $82.2 billion in January 2025** to just **$42.5 billion in April 2025, indicating reduced liquidity and user engagement.
Solana Emerges as a Leading Alternative
As Ethereum falters, Solana is stepping into the spotlight. Over the past eight days alone, SOL has surged by nearly 30%, outperforming most major cryptocurrencies during a period of broader market uncertainty.
More importantly, Solana has surpassed Ethereum in key on-chain metrics:
- DEX Trading Volume: Solana’s decentralized exchanges have processed over $50 billion in volume—exceeding Ethereum’s.
- Active Addresses: The network now boasts more than 220 million active addresses, underscoring strong user adoption and ecosystem growth.
These figures highlight Solana’s appeal as a high-speed, low-cost blockchain capable of supporting scalable decentralized applications (dApps), NFTs, and DeFi protocols.
Galaxy Digital’s pivot toward Solana may reflect a calculated bet on networks demonstrating real-world usage, developer activity, and transaction throughput—factors increasingly prioritized by institutional investors.
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Strategic Implications for the Crypto Market
Galaxy Digital’s move isn’t just about swapping one asset for another—it represents a broader reassessment of value drivers in the crypto economy.
Why Solana Over Ethereum?
Several factors make Solana an attractive alternative:
- Lower Transaction Fees: Average costs on Solana remain fractions of a cent, compared to often volatile and higher fees on Ethereum.
- Faster Block Times: With sub-second finality, Solana supports real-time applications that struggle on slower chains.
- Growing Ecosystem: Projects like Raydium, Jupiter, and Tensor have fueled innovation in DeFi and NFTs on Solana.
- Institutional Confidence: Increased investment from firms like Galaxy signals growing trust in Solana’s long-term viability.
Meanwhile, Ethereum continues to face criticism for its relatively slow upgrade cycle and persistent congestion issues—even after the transition to proof-of-stake.
Frequently Asked Questions (FAQ)
Why did Galaxy Digital sell so much Ethereum?
Galaxy likely responded to shifting market dynamics, including declining ETH dominance, reduced institutional inflows, and stronger performance from competing blockchains like Solana. The sale may be part of a broader portfolio rebalancing strategy aimed at capturing growth in emerging ecosystems.
Is Solana truly outperforming Ethereum?
In several key areas—such as DEX trading volume, active addresses, and short-term price performance—Solana has indeed outpaced Ethereum recently. However, Ethereum still leads in total value locked (TVL), developer activity over time, and enterprise adoption. The competition is intensifying, but both networks serve different segments of the market.
Could this signal a long-term decline for Ethereum?
Not necessarily. While Ethereum faces challenges, it remains central to the DeFi and Web3 movements. Upcoming upgrades like proto-danksharding could improve scalability. That said, sustained outflows and loss of market share suggest that Ethereum must innovate quickly to maintain relevance.
How reliable is on-chain data from sources like Lookonchain?
On-chain analytics platforms like Lookonchain provide transparent, verifiable insights into wallet movements and exchange flows. While they don’t reveal intent, they offer valuable clues about institutional behavior and capital allocation trends.
What does this mean for retail investors?
It underscores the importance of diversification and staying informed about macro trends. As institutions shift allocations, new opportunities may emerge in previously overlooked ecosystems. Monitoring on-chain data can help identify early signals of change.
Should I follow Galaxy Digital’s investment strategy?
While institutional moves are informative, individual strategies should align with personal risk tolerance and goals. Always conduct independent research before making investment decisions.
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Conclusion: A New Era of Blockchain Competition
Galaxy Digital’s decision to offload $10.6 billion in Ethereum and acquire Solana marks a turning point in institutional crypto strategy. It reflects a growing preference for platforms delivering performance, affordability, and user growth—qualities that Solana has demonstrated effectively in recent months.
While Ethereum remains foundational to decentralized finance, its current struggles open doors for challengers. The rise of Solana isn’t just technological—it’s financial, psychological, and structural.
For observers and participants alike, this shift serves as a reminder: in the fast-evolving world of blockchain, leadership is never permanent. Adaptation is everything.
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