Galaxy Digital is making waves in the crypto space and it’s not good news for Ethereum.

On-chain data shows they’ve sold around $105 million worth of Ethereum (ETH) over the past two weeks and converted most of it into around $100 million worth of Solana (SOL) on Binance. That’s a big portfolio shift that could change the narrative around both assets.

Why Ethereum is Losing Favor

This comes at a tough time for Ethereum. After a disappointing Q1 2025, ETH has been unable to get back up and above $2,000. Institutional outflows are accelerating and Galaxy Digital’s exit is just adding to the pressure.

According to Lookonchain, they transferred 65,600 ETH to Binance and swapped it for over 752,000 SOL tokens. That caused a 4% drop in ETH prices and killed the spring rally hopes that some analysts thought could take ETH to $3,000.

Solana is Gaining Momentum—And Confidence

While ETH is struggling, Solana is finding its footing. Network activity is up, transaction volume is growing and active addresses are up big over the last month. SOL’s performance may not be immune to daily fluctuations but it’s been strong and now trading at $138.20 after a 1.42% dip.

The bullish momentum around Solana is being reinforced by Galaxy Digital’s move. Beyond the ETH-to-SOL swap, they’ve reportedly staked $40 million worth of Solana after settling with the New York Attorney General over their LUNA dealings. That’s a big vote of confidence in SOL’s long term role in the blockchain ecosystem.

What This Means for the Market

• Galaxy Digital Moves In: $105 million ETH sold, $98 million SOL bought.

• ETH Under Pressure: Trading below $2,000 with institutional sell offs and weak sentiment.

• SOL in the Spotlight: Rising activity and new capital inflows puts Solana in position to challenge the old guard.

Conclusion: A Shift in the Crypto Power Dynamic?

Galaxy Digital’s move may be more than just a trade—it could be the early stages of a bigger portfolio rebalancing. As Solana gains traction with institutions and developers, Ethereum’s dominance is being tested.The story is changing. Institutions are moving and momentum is shifting. Ethereum is no longer the default Layer 1.