Key Highlights:
- Galaxy Digital has converted $105 million worth of Ethereum (ETH) for approximately $98.37 million in Solana (SOL), as per on-chain observations.
- Market analyses indicate SOL’s value has increased by 8%, while ETH has seen a nearly 20% decline in the last month.
- Solana’s decentralized exchange (DEX) volume has surpassed $500 billion, eclipsing Ethereum’s $400 billion, with active addresses on Solana now exceeding 220 million.
Mike Novogratz’s Galaxy Digital appears to have exchanged approximately $100 million in Ethereum (ETH) for Solana’s SOL. On-chain data referenced from Wu Blockchain indicates that Galaxy transferred 65,600 ETH, equivalent to $105 million, to Binance and subsequently withdrew 752,240 SOL—valued at roughly $98.37 million.
This strategic move raises speculation that Galaxy Digital may be acting on recommendations from Standard Chartered’s recent analysis, which identifies ETH as being in a “structural decline,” particularly after the bank revised its year-end target price for the cryptocurrency. Data from an Arkham dashboard shows Galaxy holds $87.9 million in ETH compared to $23.86 million in SOL.
As of late, SOL has demonstrated resilience, with a reported 8% gain over the past month, contrasting sharply with Ethereum’s fall by approximately 20%. Visual data indicates that Solana’s DEX volume has swelled to over $500 billion in the past three months, while Ethereum has remained just under $400 billion, highlighting a significant shift in user engagement and transaction activity.
Furthermore, discussions are ongoing regarding potential taxation on Layer-2 solutions, proposed by Justin Sun, as a strategy to ameliorate Ethereum’s current challenges.
Market Implications:
The recent developments underscore a pivotal shift in investor sentiment towards Solana amidst concerns over Ethereum’s viability, impacted by a myriad of market factors.
