Solana's Corporate Adoption Accelerates as Galaxy Digital Swaps $100M ETH for SOL

Solana's appeal to institutional investors appears to be rapidly growing, with the latest indication being a significant strategic move by Mike Novogratz's Galaxy Digital. On-chain data reveals that Galaxy Digital recently swapped a substantial $100 million worth of Ethereum (ETH) for Solana (SOL), as reported by CoinDesk.

Blockchain analytics firm Lookonchain identified the significant transaction, noting that over the past two weeks, Galaxy Digital transferred 65,600 ETH (approximately $105 million) to Binance and subsequently withdrew 752,240 SOL (valued at around $98.37 million). This substantial asset reallocation signals a notable shift in Galaxy Digital's investment strategy, reflecting increasing confidence in Solana's potential amidst a backdrop of shifting market dynamics for Ethereum.

Mike Novogratz, CEO of Galaxy Digital, has previously commented on the changing sentiment surrounding the two leading smart contract platforms, stating, "Ethereum sentiment is unbelievably bearish due to its underperformance compared to Bitcoin and Solana." This perspective likely played a key role in the firm's decision to reduce its Ethereum holdings in favor of Solana. Galaxy Digital did not immediately respond to CoinDesk's request for comment on the transaction.

Observers speculate that this move by a major institutional player like Galaxy Digital could trigger increased interest and further capital inflows into Solana, potentially impacting its valuation and overall market share.

Market data further supports this shift in sentiment. Over the past month, Solana's price has seen an 9% increase, while Ethereum has experienced a nearly 15% decline. This divergence in performance likely contributes to the rationale behind Galaxy Digital's strategic pivot.

Beyond price action, on-chain metrics also highlight Solana's growing traction. Data from Dune Analytics reveals that decentralized exchange (DEX) volume on Solana has surpassed $500 billion in the last three months, outpacing Ethereum's DEX volume, which sits below $400 billion for the same period. Furthermore, the number of active addresses on Solana has surged to over 220 million, significantly exceeding the combined active addresses on Ethereum and its layer-2 networks, which total just over 80 million.

This corporate adoption of Solana is not an isolated incident. Earlier this week, GSR led a $100 million investment into Nasdaq-listed Upexi, Inc. , a company that announced a strategic shift towards a Solana-focused treasury strategy involving accumulation and staking of the asset.

Earlier this month, Janover Inc. (Nasdaq: JNVR) saw its stock price soar after a team of former Kraken executives took over the company and announced a similar strategy of accumulating and staking Solana, attracting investments from prominent crypto firms like Pantera Capital and Kraken itself.