Galaxy Digital, Led by Mike Novogratz, Converts $100M Worth of ETH into SOL, On-Chain Data Shows

Galaxy Digital Swaps $100M ETH for SOL as Ethereum Struggles, Data Shows

Mike Novogratz’s Galaxy Digital has reportedly swapped $100 million worth of ether (ETH) for solana (SOL) in a strategic shift as Ethereum faces ongoing challenges, according to on-chain data from Wu Blockchain.

The data reveals that over the past two weeks, Galaxy Digital transferred a substantial 65,600 ETH, valued at approximately $105 million, to Binance and subsequently withdrew 752,240 SOL, valued at around $98.37 million. The move comes amid growing concerns about Ethereum’s performance, with recent reports, including a note from Standard Chartered, describing ETH as being in a “structural decline.”

The market data tells a compelling story: SOL has gained 8% over the past month, while ETH has seen a nearly 20% drop. Standard Chartered recently slashed its year-end price target for Ethereum, further fueling the bearish sentiment around the asset.

Despite the sell-off in ETH, Galaxy Digital still holds $87.9 million worth of ETH and $23.86 million worth of SOL, according to data from Arkham. CoinDesk reached out to Galaxy Digital for comment but did not receive a response.

The increasing volume on Solana’s blockchain provides further evidence of the shift in sentiment. Solana’s decentralized exchange (DEX) volume has surged past $500 billion in the last three months, outpacing Ethereum’s DEX volume, which stands below $400 billion. Active addresses on Solana have also surged past 220 million, far exceeding Ethereum and its Layer-2 networks, which have just over 80 million active addresses.

In light of Ethereum’s struggles, there have been discussions within the community about ways to address its decline. Tron founder Justin Sun proposed a tax on Layer-2 solutions, with the tax revenue being used to buy back and burn ETH in a decentralized manner. However, this idea has not yet been formalized into an Ethereum Improvement Proposal (EIP).

Meanwhile, Ethereum ETFs have experienced significant outflows, with nearly $600 million in outflows from these products in the past two months, indicating waning investor confidence in ETH.