Data Shows Mike Novogratz’s Galaxy Digital Swapped $100M in Ethereum for Solana

In a notable move, Galaxy Digital, led by prominent investor Mike Novogratz, has executed a significant portfolio reallocation, swapping approximately $105 million in Ethereum (ETH) for $98.37 million in Solana (SOL).

Onchain data reveals that over the past two weeks, Galaxy transferred 65,600 ETH to Binance while withdrawing 752,240 SOL, reflecting a deliberate pivot toward Solana. This transaction aligns with broader market trends, where Solana has gained 8% in value over the past month, while Ethereum has faced a nearly 20% decline. The shift underscores growing confidence in Solana’s ecosystem, which has recently outperformed Ethereum in key blockchain metrics, for example Solana recently overtook Ethereum in overall staking rewards.

Galaxy’s decision appears to be driven by Solana’s robust performance and Ethereum’s ongoing challenges. A recent Standard Chartered report described Ethereum as being in “structural decline,” prompting the bank to lower its year-end price target for the asset. The report highlighted pressures such as the $50 billion market cap reduction attributed to Base, an Ethereum layer-2 solution. Despite this, Standard Chartered noted that tokenized real-world assets could offer Ethereum a path to stabilization. Meanwhile, Solana has demonstrated remarkable growth, with its decentralized exchange (DEX) volume surpassing $500 billion, outpacing Ethereum’s $400 billion. Additionally, Solana’s network activity is thriving, with over 220 million active addresses, further solidifying its appeal to institutional players like Galaxy.

Solana’s Rising Dominance in Blockchain Metrics

The strategic swap by Galaxy Digital reflects Solana’s increasing prominence in the blockchain landscape. Over the past three months, Solana has consistently outpaced Ethereum in transaction volume, showcasing its scalability and efficiency. An Arkham dashboard tracking Galaxy’s holdings indicates the firm now holds $87.9 million in ETH compared to $23.86 million in SOL, suggesting a cautious but deliberate rebalancing. This move may signal broader market sentiment favoring Solana’s high-throughput capabilities and growing ecosystem over Ethereum’s established but currently struggling network. As institutional interest in Solana grows, the cryptocurrency market continues to evolve, with Galaxy’s repositioning serving as a key indicator of shifting priorities among major players.

The broader implications of Galaxy’s swap extend beyond a single transaction. Solana’s ability to attract institutional capital highlights its potential to challenge Ethereum’s dominance in decentralized finance and other blockchain applications. While Ethereum retains a strong foundation, its recent market performance and structural challenges have opened the door for competitors like Solana to gain ground. For investors and market observers, Galaxy Digital’s move offers a compelling case study in navigating the dynamic and rapidly changing cryptocurrency landscape. As Solana continues to scale and innovate, its role in shaping the future of blockchain technology becomes increasingly significant.