Catenaa, Sunday, May 04, 2025-Galaxy Digital has swapped over $100 million worth of Ethereum (ETH) for Solana (SOL) in the past two weeks, according to blockchain analytics firm Lookonchain.
The exchange, which saw Galaxy deposit 65,600 ETH worth $106.5 million and withdraw 752,240 SOL worth $105 million from Binance, signals a shift in the firm’s crypto strategy amid Ethereum’s ongoing struggles.
Ethereum’s market dominance fell to a historic low today, briefly dipping below 7%. ETH’s dominance has dropped 43% since the start of the year, as its price declined by 51.5%. Currently trading at $1,627, Ethereum’s weaker performance contrasts with Bitcoin’s resilience amid a market downturn fueled by US tariffs.
Ethereum’s declining dominance is also reflected in institutional activity, with Ethereum exchange-traded funds (ETFs) facing eight consecutive weeks of outflows totaling more than $909 million.
Ethereum’s challenges are compounded by scalability issues, with decentralized finance (DeFi) activity migrating to more cost-effective alternatives such as Solana and Layer-2 solutions like Base.
In response to Ethereum’s performance issues, the network is set to deploy the Pectra upgrade on May 7.
This upgrade, aimed at improving scalability and user experience, will raise the staking limit and introduce significant software changes. Ethereum co-founder Vitalik Buterin also proposed replacing Ethereum’s bytecode with RISC-V architecture to further boost scalability.
