ETH dominance drops below 7% as investors rotate into faster, cheaper networks
Crypto investment firm Galaxy Digital has swapped over $100 million in Ethereum for Solana, according to blockchain analytics firm Lookonchain, signaling a major rotation amid growing concerns over Ethereum’s scalability and weakening price action.
Between April 8 and April 22, Galaxy deposited 65,600 ETH (worth $106.5 million) into Binance and withdrew 752,240 SOL, valued at approximately $105 million. Much of the SOL has since been moved to unidentified wallet addresses, suggesting long-term holding or strategic deployment.
ETH dominance hits historic low
The move coincides with ETH’s market cap dominance falling to an all-time low of 6.9%, down 43% year-to-date, amid declining decentralized finance (DeFi) activity and ongoing scalability issues. Ethereum’s DEX volumes fell from $82.2 billion in January to $42.5 billion in March, according to DefiLlama.
Meanwhile, Ethereum ETFs have recorded eight consecutive weeks of net outflows totaling over $900 million, reflecting fading institutional confidence.
Ethereum's long-awaited Pectra upgrade, set to go live on May 7, is expected to bring significant improvements, including account abstraction, increased staking limits, and enhanced rollup support. But investors appear increasingly impatient, shifting attention to Solana and Layer-2 platforms like Base that offer lower fees and faster settlement.
