Galaxy Digital’s strategic shift from Ethereum to Solana reflects growing institutional interest in Solana due to its superior performance and scalability. The firm sold 65,600 ETH for $105.48 million and purchased 752,240 SOL, indicating a pivot away from struggling Ethereum. While Ethereum continues to face price declines and performance challenges, some large investors are still acquiring ETH, showing divergent investment strategies in the crypto landscape.
In April 2025, Galaxy Digital, led by Mike Novogratz, executed a significant investment strategy by selling 65,600 ETH for $105.48 million and acquiring 752,240 SOL for $98.37 million between April 8 and 22. This shift, noted by Watcher Oracle, highlights an increasing institutional preference for Solana as Ethereum faces price volatility and challenges in scaling.
The portfolio adjustment by Galaxy Digital was strategically executed, with on-chain data indicating they deposited 65,600 ETH, valued at about $105.48 million, to Binance. Concurrently, they withdrew 752,240 SOL worth $98.37 million from the same exchange. At this time, ETH was priced around $1,607.93, while SOL was approximately $130.77 per token, suggesting a deliberate pivot towards Solana’s capabilities.
Solana’s performance in the blockchain space is noteworthy, as it can process thousands of transactions per second at low costs, thereby outperforming Ethereum, which is often burdened by network congestion and high fees. By April 2025, Solana’s Total Value Locked (TVL) reached $7.42 billion, according to DefiLlama, indicating vigorous growth in its DeFi ecosystem, outpacing Ethereum in several performance metrics.
The proliferation of meme coins on Solana has also enhanced its market visibility and user engagement. Additionally, the introduction of spot Solana ETFs in Canada in 2025 allows investors to stake their SOL, creating increased yields and making Solana appealing for institutional investment despite Ethereum’s inflationary issues.
Ethereum is currently in a precarious position, collapsing from nearly $4,100 in December 2024 to about $1,600 in April 2025, which represents a significant 61% drop. This decline is influenced by broader economic uncertainty and adverse external factors, notably changes in trade policies and tariffs affecting risk assets.
Despite Ethereum’s troubles, some large investors remain committed. Data from Glassnode reveals a rise in Ethereum whale accumulation, with holdings increasing from 12 million ETH in early 2024 to 13.5 million ETH by April 2025. The overall sentiment among these investors suggests a long-term belief in Ethereum’s potential, despite current market conditions.
As institutional interest evolves, investors are diversifying towards layer-1 networks that promise better performance, with Solana emerging as a leading contender due to its efficient operational capabilities. The establishment of Solana ETFs reinforces this trend, paving the way for further interest and potential products in various markets.
