Key Notes
- Galaxy Digital swapped over $100M of ETH for SOL amid Solana’s rising DEX activity.
- Solana now leads decentralized trading volumes, commanding over 48% market share.
- Solana has risen by more than 8% in one week.
A Strategic Move: Why Galaxy Switched Gears
Tracking on-chain activity revealed that Galaxy Digital shifted significant ETH holdings to SOL as Solana’s DEX volumes and meme token activity soared. This swap happened while ETH prices weakened, losing about 20% in a month, whereas SOL rebounded by 8%.
The move wasn’t just about trading for quick gains. Galaxy also staked around $40 million worth of SOL, suggesting a longer-term bet on Solana’s ecosystem growth.
Interestingly, this pivot comes as Ethereum faces notable headwinds. A wallet linked to the Ethereum Foundation reportedly moved thousands of ETH to Kraken exchange according to Lookonchain, an On-chain analytical platform, historically a precursor to price corrections. Combined with slowing fee revenues on Ethereum and whales reducing exposure, the selling pressure on ETH seems to be mounting.
Solana’s Rising Strength
Meanwhile, Solana’s on-chain metrics are thriving. Solana now accounts for over 48% of all decentralized trading volumes, far outpacing Ethereum’s 19.7% share.
Source: Dune Analytics
In Q1 2025, Solana’s ecosystem revenue surged to $441.6 million, a massive jump from just $42.17 million in Q1 2024, highlighting explosive growth across its applications.
Source: Token Terminal
What This Means for Traders and Investors
The timing of Galaxy Digital’s move is significant. In late 2024, Galaxy had already trimmed ETH exposure in favor of Bitcoin. Ethereum remains Galaxy Digital’s second-largest portfolio holding.
Now, by leaning into Solana, it suggests a bet that Solana could outperform in the short to medium term, thanks to:
- Lower transaction fees compared to Ethereum.
- Faster network speeds.
- Rising ecosystem growth, especially in meme coins, DeFi, and staking.
Institutional interest is also heating up. ARK Invest recently made its first direct Solana investment through a Canadian-based SOL staking ETF, marking Solana’s debut in U.S.-listed ETF portfolios.
However, some caution is warranted. Whale movements, like recent 100,000 SOL deposits into Binance, suggest short-term volatility could still challenge Solana’s price action.
Conclusion
Galaxy Digital’s $100M swap from ETH to SOL isn’t just a portfolio rebalance, it’s a strong vote of confidence in Solana’s momentum. Traders and investors should watch closely as Solana strengthens its grip on the DEX market and expands its meme and DeFi presence.
While Ethereum remains the heavyweight in institutional DeFi and security, Solana’s rapid retail and meme-driven growth could fuel its next leg up in the crypto cycle. With major players shifting their chips, the market may be entering a new phase of competition between old and new leaders in crypto infrastructure.
