TL;DR
- Despite the recent positive news around Ethereum, one of the most prominent ETH investors has continued to offload more portions of the asset, and has even replaced it with the competition.
- The Ethereum Foundation might also be selling some of its ether holdings.
Galaxy Digital Replaces ETH With SOL?
CryptoPotato reported last week that Mike Novogratz’s crypto-focused company, Galaxy Digital, had begun selling some of its ETH holdings. Alongside other Ethereum investors, such as whales and institutions, Galaxy had deposited almost $80 million worth of the asset into Binance and Coinbase within five days at the time.
Although there were some positive developments showcasing that Ethereum might have turned itself around in the following days, Galaxy has continued to offload, according to data from Lookonchain. Moreover, the analytics company outlined an even more worrying scenario for ETH fans, indicating that the company has used the $105 million received by selling ether to purchase SOL.
It seems that Galaxy Digital is selling $ETH and buying $SOL!
In the past 2 weeks, Galaxy Digital deposited 65,600 $ETH($105.48M) to #Binance and withdrew 752,240 $SOL($98.37M) from #Binance.https://t.co/lD8tgkC4Py pic.twitter.com/olcPWNnGq2
— Lookonchain (@lookonchain) April 22, 2025
Solana is widely considered the most prominent competitor for Ethereum. Although it remains far away in terms of DeFi and Bridged TVL, Solana has become the home of many other protocols and has a lot more active addresses due to its faster speeds and lower transaction costs. Consequently, it could be threatening for Ethereum if large investors such as Galaxy continue to prefer Solana over it.
The EF Also Selling?
Another update from Lookonchcain informed that a wallet linked to the non-profit organization behind the second-biggest blockchain, the Ethereum Foundation, has deposited 1,000 ETH into Kraken. It had received 84,513 ETH from the EF back when ether traded at $1.2 (that’s one dollar and twenty cents, not $1,200) about ten years ago.
A wallet linked to the Ethereum Foundation deposited 1,000 $ETH($1.58M) to #Kraken an hour ago.
This wallet received 84,513 $ETH($134M now) from the Ethereum Foundation 10 years ago, when the price of $ETH was ~$1.2.https://t.co/ivl9tIpTzs pic.twitter.com/V0JSOcF2a9
— Lookonchain (@lookonchain) April 22, 2025
The organization has been criticized in the past as well for selling large quantities of ETH in a relatively short time. This prompted Ethereum’s co-founder, Vitalik Buterin, to explain that the Foundation sells only when it has to cover operational costs, like paying researchers and developers.