Ethereum Sell-Off: Why Institutions Are Dumping ETH for Solana
The post Ethereum Sell-Off: Why Institutions Are Dumping ETH for Solana appeared first on Coinpedia Fintech News
As per Lookonchain Data, Galaxy Digital’s recent actions suggest a strategic shift from Ethereum to Solana. Over the past two weeks, the firm deposited 65,600 ETH (worth $105.48M) to Binance—likely for selling—and withdrew 752,240 SOL (worth $98.37M), indicating fresh accumulation.
The asset manager recently staked $40 million worth of SOL, believed to be part of a broader strategic shift following its previous involvement in the LUNA token debacle.
This move could reflect growing confidence in Solana’s ecosystem, which has gained momentum due to its speed, low fees, and rising developer activity, while Ethereum faces scalability challenges and increased sell pressure. It signals that Galaxy may see better short-to-mid-term potential in SOL over ETH.
Notably, Galaxy Digital had already offloaded ETH in late 2024 to buy BTC, signaling a growing trend of rotating out of Ethereum.
Ethereum Foundation Joins the Sell-Off
According to Lookonchain, an old wallet linked to the Ethereum Foundation sent 1,000 ETH ($1.58M) to Kraken an hour ago. This wallet received 84,513 ETH from the foundation 10 years ago when ETH was just $1.20. That stash is now worth over $134 million.
In 2024, the Ethereum Foundation sold 4,466 ETH for around $12.61 million, averaging $2,823 per ETH. These sales often happened just before the ETH price drops. The biggest single sales were 700 ETH in January and 450 ETH in August.
Ethereum Price Analysis
These sell-offs are already impacting the market. ETH has dropped over 4% since the news surfaced, with a 1.3% decline in the last 24 hours. The broader picture isn’t encouraging either—Ethereum fell by 32.2% in February and 28.4% in March, with a nearly 11% decline so far in April.
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