Galaxy Digital Trades $106 Million Eth for SOL as Ether Dominance Hits Historic Low

Summary

• Major Institutional Swap: Galaxy Digital recently exchanged over $100 million worth of Ethereum (ETH) for Solana (SOL), suggesting a strategic portfolio shift by the major crypto financial services firm.

• Ethereum’s Declining Market Position: This swap coincides with Ethereum experiencing record low market dominance (below 7%), significant price decline year-to-date, lagging performance against Bitcoin, and substantial outflows from ETH-focused ETFs.

• DeFi Challenges and Migration: Ethereum faces reduced activity on its decentralized exchanges and ongoing scalability concerns, potentially driving users and developers towards more cost-effective platforms like Solana and Layer-2 solutions.

Recent on-chain activity points to a substantial capital rotation by the cryptocurrency financial services firm, Galaxy Digital.

Galaxy Digital Pivots Holdings as Ethereum Struggles in the Market

Analysis suggests the company has transitioned over $100 million away from Ethereum (ETH) and into Solana (SOL) within the last two weeks.

This significant portfolio adjustment, brought to light by blockchain intelligence firm Lookonchain utilizing data from Arkham, occurs against a backdrop of weakening sentiment and market standing for Ethereum.

Significant ETH to SOL Swap Observed

Specifically, transaction records indicate that Galaxy Digital deposited approximately 65,600 ETH (valued around $106.5 million) onto the Binance exchange, subsequently withdrawing roughly 752,240 SOL (worth about $105 million) during this period.

Arkham’s data shows that Galaxy Digital presently holds around 55,760 ETH, estimated at $90.5 million, and 171,315 SOL, valued at $23.91 million.

It also reveals that a notable amount of the withdrawn SOL was funneled into undisclosed wallet addresses.

Ethereum Faces Waning Dominance and Investor Confidence

This apparent pivot from ETH to SOL by a major institutional player like Galaxy may signal growing concerns about Ethereum’s near-term prospects.

The platform has faced considerable headwinds, marked by significant price depreciation and potentially flagging investor morale.

Concurrently, Ethereum’s influence within the broader cryptocurrency market recently hit an unprecedented low, as measured by its market capitalization relative to the total market (ETH dominance), momentarily falling below the 7% mark.

This metric has diminished by 43% since the year began, mirroring a 51.5% decline in ETH’s market price over the same timeframe, with Ether currently valued near $1,627.

Comparative Underperformance and Institutional Outflows

Further highlighting Ethereum’s challenges, its performance has lagged behind Bitcoin, particularly during recent market turbulence ostensibly linked to U.S. tariff news.

The relative value of Ether compared to Bitcoin (ETH/BTC ratio) has also deteriorated significantly, falling by 48% year-to-date, according to TradingView data.

This climate of uncertainty appears mirrored in institutional behavior, as U.S.-listed exchange-traded funds focused on Ethereum have witnessed eight consecutive weeks of net capital withdrawal, totaling over $909 million in outflows.

DeFi Dominance Challenged by Scalability Issues

Moreover, Ethereum’s historical dominance in the decentralized finance (DeFi) arena is facing erosion due to persistent issues related to network scalability and transaction costs.

Activity on Ethereum’s decentralized exchanges experienced a marked contraction, with monthly volumes reportedly shrinking from $82.2 billion in January and $64.7 billion in February down to $42.5 billion in March 2025 (as of the original report), according to DefiLlama statistics.

Observations suggest that decentralized activity is increasingly migrating towards more economical networks, such as Solana, and Layer-2 scaling solutions built atop Ethereum, like Base, potentially seeking greater efficiency and lower fees.

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