Recent on-chain data indicates that Galaxy Digital is shifting its focus from Ethereum to Solana on the Binance exchange, exacerbating challenges for the leading altcoin.
New insights reveal that Galaxy Digital may be liquidating its Ethereum (ETH) assets on Binance.
The firm appears to be investing in Solana (SOL), accumulating nearly $100 million in SOL over a span of two weeks.
Galaxy Digital Withdraws 752,240 SOL From Binance
An analysis shared by Lookonchain suggests that Galaxy Digital is losing confidence in Ethereum based on its recent on-chain activities.
The data shows that the financial services firm may have exchanged a significant portion of its ETH for SOL tokens.
Over the past 14 days, Galaxy Digital has deposited 65,600 ETH, valued at $105 million, onto Binance.
During the same timeframe, the firm withdrew 752,240 SOL tokens, likely as part of an ETH-to-SOL transaction.
“Galaxy Digital appears to be selling ETH and acquiring SOL,” noted Lookonchain. “In the last two weeks, they deposited 65,600 ETH ($105.48M) into Binance and withdrew 752,240 SOL ($98.37M) from the platform.”
The notable volume and regularity of these transactions over a two-week period have drawn attention.
The consistent purchases of SOL follow Galaxy Digital's staking of $40 million in SOL after reaching a settlement with the New York Attorney General regarding LUNA sales.
This is not the first instance of the firm divesting from Ethereum; previously, it shifted from ETH to accumulate Bitcoin in late 2024.
The news has negatively impacted Ethereum's price, which has dropped by 4%, dampening hopes for a rally towards $3,000.
Ethereum is currently experiencing a challenging period as Solana continues to gain momentum.
Recent on-chain activity from Galaxy Digital highlights the difficulties faced by Ethereum, which has seen its value drop below $2,000 following a disappointing first quarter. This situation has prompted many investors to liquidate their ETH assets.
While Galaxy Digital is divesting its ETH, Justin Sun, the founder of Tron, is choosing to retain his ETH holdings.
Additionally, WLFI, a project backed by Trump, has refuted claims of selling its ETH, despite a wallet associated with the project having offloaded over $8 million in ETH tokens.
In contrast, Solana is enjoying a remarkable surge in positive on-chain metrics. Over the past month, Solana has recorded the highest number of active wallet addresses by a significant margin, and its transaction volume has surpassed that of its competitors.
The increase in network activity surrounding Solana has sparked speculation about a potential rise in SOL's value to $2,000.
Currently, SOL is priced at $138.2, having decreased by 1.42%, yet trader enthusiasm remains at unprecedented levels.
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