In recent on-chain data, it appears that Galaxy Digital, a financial services company, may be offloading its Ethereum (ETH) holdings on the Binance exchange. Instead, the company seems to be favoring Solana (SOL), as it has stacked up nearly $100 million worth of SOL tokens over the last two weeks. The data suggests that Galaxy Digital deposited 65,600 ETH valued at $105 million on Binance and withdrew 752,240 SOL tokens in what seems to be an ETH-to-SOL swap.
The move by Galaxy Digital to shift its focus from Ethereum to Solana has caught the attention of many in the crypto community. This comes at a time when Ethereum has been facing a tough period, trading below $2,000 after a lackluster Q1. Investors have been forced to sell their ETH holdings, further dampening the sentiment around the altcoin. The on-chain movement by Galaxy Digital has raised eyebrows due to the volume and consistency of transactions over a two-week period.
Galaxy Digital’s decision to sell off its ETH holdings is not entirely surprising, as the company has previously shown a preference for Bitcoin over Ethereum. In late 2024, the firm ditched ETH in favor of stacking Bitcoin. The recent reports of Galaxy Digital selling ETH have negatively impacted the price of Ethereum, leading to a 4% drop and reducing optimism for an ETH rally to $3,000. On the flip side, Solana has been on a red-hot streak, with positive on-chain metrics fueling speculation for SOL to reach $2,000.
As Solana continues to surge forward, attracting interest from traders and investors, Ethereum is facing a tough patch. Despite the setbacks, Tron founder Justin Sun is holding onto his ETH holdings, while other projects like Trump-backed WLFI have denied selling their ETH. The on-chain activities of Galaxy Digital, combined with the promising outlook for Solana, highlight the shifting dynamics in the cryptocurrency market.
Over the last 30 days, Solana has shown strong performance with the highest number of active wallet addresses and transaction volume surpassing its peers. SOL is currently trading at $138.2, with traders expressing enthusiasm for a potential rise to $2,000. The momentum behind Solana, as seen in the on-chain data and market activity, is driving further speculation on the future prospects of the project. With Galaxy Digital’s move to embrace Solana and shift away from Ethereum, it will be interesting to see how these developments impact the broader crypto market.
