Solana Surpasses Ethereum in Weekly Fee Earnings for the First Time
Solana has outpaced Ethereum in total fees and MEV tips for the first time in a weekly timeframe since its inception, as reported by Blockworks Research. During the week of July 22, Solana accumulated around $25 million in revenue, surpassing Ethereum’s $21 million mark. At the time of reporting, SOL was trading at $185.8, experiencing a slight decline from its earlier peak of $193.8, according to data from CryptoSlate.
Blockworks analyst Dan Smith highlighted that the total fee data encompasses all revenue sources for Solana validators, including tips and maximum extractable value (MEV). He detailed that 58% of the fee revenue originated from MEV tips, while 37% was from priority transaction fees. On July 28, the network achieved a daily revenue of $5.5 million, the highest in three months, showcasing the increasing traction and user engagement on the Solana network in recent times.
Mert Mumtaz, the CEO of Helius Labs, emphasized that on July 28, the network generated more revenue than Ethereum, Arbitrum, and Base combined, excluding MEV tips. However, he also pointed out that the high trading volumes on Solana DEXs were not entirely authentic, with a significant portion of the volume linked to “wash trading.”
Despite Solana’s recent accomplishments, Ethereum maintains its dominance in total value locked (TVL), holding nearly $60 billion, over ten times higher than Solana’s approximately $5.5 billion, as per DefiLlama data.
The surge in fees for Solana can be attributed to the heightened activity on its network, particularly within memecoin trading platforms like Pump.fun and Moonshot. These platforms have spearheaded a memecoin trading frenzy that has significantly bolstered Solana’s market presence. The ease of access and the capability for anyone to launch their token have led to a substantial increase in memecoin trading since the end of 2022.
This trend initiated with the emergence of tokens like Bonk and has evolved into a culture of memecoins named after various entities such as politicians, celebrities, and pets, among others, believed to have “meme-worthiness.” Despite the hype, many of these tokens witnessed a rapid decline in value within a few weeks of their launch, prompting several celebrities to disassociate from the projects.
As of the latest data on Jul. 29, 2024, Solana holds the fourth position by market cap, with a price increase of 0.31% over the past 24 hours. Solana boasts a market capitalization of $86.33 billion and a 24-hour trading volume of $3.45 billion. The total crypto market is valued at $2.41 trillion with a 24-hour volume of $80.61 billion, while Bitcoin dominance stands at 55.10%.
