Galaxy Digital swapped 65,600 ETH worth more than US$105 million for Solana. The move comes after a recent ETH price dip of nearly 4% as SOL continues to surge. The crypto asset management company also withdrew 752,240 SOL tokens worth approximately US$98 million. The withdrawal hints toward a calculated portfolio realignment.
Ethereum's price declined by almost 4% on April 22, 2025, dipping below US$2,000. Declining investor faith following the disappointing Q1 performance of ETH weakened its bullish momentum. The continued scalability issues also resulted in mass ETH sell-off.
Solana remains outperforming on-chain rivals. It gained a lead in active wallet addresses and transactions during the past 30 days. Recently, approximately 11 million SOL tokens, valued at around $1.6 billion, were unlocked from the FTX estate. This prompted a surge of 8.97% in SOL price to $151.42 on April 23, 2025.
This is not the first time Galaxy Digital has left Ethereum. In late 2024, the company exchanged ETH for Bitcoin, indicating its willingness to shift according to market dynamics. It also recently staked US$40 million in SOL after resolving legal matters with the NYAG related to its LUNA exposure.
Not every developer is following Galaxy's crypto strategy. Tron's Justin Sun still has ETH. Trump-linked WLFI also refutes liquidating holdings, even after US$8 million worth of ETH transfer from an affiliated wallet.
Solana institutional adoption grows. Galaxy Digital's actions further echo this shifting investor sentiment in the Layer 1 sector. This may be the start of a broader trend as companies react to network performance and market sentiment.