Galaxy Digital shifts focus from Ethereum to Solana, withdrawing ETH and investing heavily in SOL for long-term growth - IcoHolder.

In a notable move that could impact the crypto market, Galaxy Digital is reportedly shifting its focus from Ethereum to Solana, as revealed by recent on-chain data. Over the past two weeks, the firm has deposited 65,600 ETH, valued at approximately $105.48 million, into Binance. At the same time, Galaxy has withdrawn 752,240 SOL, worth $98.37 million, indicating a strong interest in Solana.

This shift in preference aligns with a broader trend that has seen the Ethereum Foundation and related entities selling off substantial amounts of ETH, contributing to recent price declines. The sell-off has added to the pressure on Ethereum, while Solana’s ecosystem has been growing rapidly, attracting more developers and users with its high-speed transactions and low fees.

What seems to be driving Galaxy’s decision to rotate its investments? Analysts believe the firm is positioning itself for a stronger short-to-mid-term potential in Solana, which has seen increased traction due to its scalability and developer-friendly features. The firm’s move is not just about accumulating Solana; Galaxy has also staked around $40 million worth of SOL, signaling a long-term commitment to the blockchain. This shift follows the firm’s cautious approach after its previous exposure to the LUNA collapse, suggesting that Galaxy is now taking a more measured stance in its crypto investments.

Galaxy Digital is no stranger to adjusting its exposure to Ethereum. In late 2024, the firm reduced its ETH holdings in favor of Bitcoin, continuing a broader trend of large investors diversifying away from Ethereum. The most recent movements reinforce this narrative, especially as Ethereum continues to face scalability issues and increasing sell pressure. Lookonchain also recently reported a significant transfer of 1,000 ETH from an old Ethereum Foundation wallet, further highlighting the ongoing trend of ETH sell-offs.

As Ethereum faces continued challenges, Solana’s ecosystem appears to be growing in strength, positioning it as a potential frontrunner in the crypto space for the foreseeable future.