Galaxy Digital Dumps $105M Ethereum for Solana in Massive Sell-Off; Here’s Why

Galaxy Digital seems to be making a clear move away from Ethereum and leaning into Solana.

According to on-chain data from Lookonchain, the firm has deposited 65,600 ETH (valued at around $105.48 million) to Binance over the past two weeks, likely preparing for a large sell-off. At the same time, Galaxy withdrew 752,240 SOL (worth $98.37 million), signaling a significant accumulation of Solana.

But what’s driving this rotation? And why now?

$40M in Staked SOL Suggests Long-Term Play

Galaxy’s growing interest in Solana doesn’t end with accumulation. The firm has also staked around $40 million worth of SOL, which appears to be part of a longer-term strategy. This comes after its earlier exposure to the LUNA collapse, indicating a more deliberate and cautious approach this time.

Solana’s appeal continues to grow thanks to its high-speed transactions, low fees, and increasing developer activity. Ethereum, meanwhile, is still facing scalability issues and increasing sell pressure. This latest move suggests Galaxy sees stronger short-to-mid-term potential in Solana compared to Ethereum.

Not Galaxy’s First Exit from ETH

This isn’t Galaxy’s first time reducing its ETH exposure. In late 2024, the firm had already rotated some of its Ethereum holdings into Bitcoin, adding to the ongoing narrative of large investors diversifying away from ETH.

Further signs of Ethereum selling pressure surfaced just recently. Lookonchain spotted an old wallet connected to the Ethereum Foundation sending 1,000 ETH (about $1.58 million) to Kraken just an hour ago. That wallet originally received 84,513 ETH from the foundation nearly a decade ago – when ETH was priced at only $1.20. That stash is now worth more than $134 million.

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The Ethereum Foundation has a history of selling ETH before market pullbacks. In 2024 alone, it sold 4,466 ETH for roughly $12.61 million, averaging about $2,823 per coin. Key sales included 700 ETH in January and another 450 ETH in August—both shortly before price drops.

These sales seem to have a real impact on market sentiment. Since the latest transaction hit the blockchain, ETH has dropped over 4%, including a 1.3% decline in the last 24 hours.

Ethereum Price Analysis

ETH’s broader price trend hasn’t been promising either. After falling 32.2% in February and another 28.4% in March, Ethereum has already slipped nearly 11% this month.

With key players like Galaxy Digital rotating out of ETH and into alternatives like Solana, Ethereum’s dominance could face further challenges – especially if sell-offs continue and Solana’s ecosystem keeps gaining traction.