On-Chain Data Shows Galaxy Digital, Under Mike Novogratz’s Leadership, Swaps $100M ETH for SOL

Mike Novogratz’s Galaxy Digital Shifts $100M from ETH to SOL Amid Ethereum’s Struggles

Galaxy Digital, the crypto investment firm led by Mike Novogratz, has moved a significant portion of its portfolio, swapping $100 million worth of ether (ETH) for solana (SOL).

On-chain data reveals that Galaxy transferred 65,600 ETH—worth approximately $105 million—into Binance in the past two weeks, while withdrawing 752,240 SOL, valued at about $98.37 million. The move follows a series of concerns regarding Ethereum’s long-term prospects, as major financial institutions, including Standard Chartered, have downgraded the token’s price outlook.

Ethereum’s struggles are reflected in its performance, with ETH down nearly 20% over the last month, while Solana has gained 8% in the same period. The shift toward Solana comes at a time when Ethereum is facing competition from faster and more scalable blockchain platforms like Solana, which has shown substantial growth in its transaction volumes and active addresses.

Standard Chartered’s recent report attributed Ethereum’s challenges to a “structural decline,” as competition intensifies in the blockchain space. The firm suggested that the introduction of tokenized real-world assets could help stabilize Ethereum’s ecosystem. However, data from the past three months shows that Solana’s decentralized exchange (DEX) volumes have surpassed Ethereum’s, with Solana recording over $500 billion in DEX volume compared to Ethereum’s $400 billion.

Galaxy’s portfolio, according to Arkham data, still holds a large amount of ETH ($87.9 million), but its recent move to increase its position in Solana signals a shift in strategy. The firm’s holdings of SOL have increased to $23.86 million as it diversifies its exposure within the digital asset space.

The migration of funds from Ethereum to Solana comes amid a broader trend in which investors have withdrawn nearly $600 million from Ethereum-based ETFs in the past two months. As Solana continues to capture market share, Ethereum’s ability to maintain its dominance in the blockchain space remains uncertain, with some suggesting more drastic measures, such as imposing a tax on Layer-2 networks, could help Ethereum regain its momentum. However, such proposals are still in early stages and have not yet been formalized into Ethereum Improvement Proposals (EIPs).