Solana Overtakes Ethereum in Revenue Generation in the Crypto World
The Solana blockchain has achieved a significant milestone by outperforming Ethereum in specific metrics, marking a historic moment for the network amid heightened activity, largely fueled by the emergence of memecoins.
In a groundbreaking development, Solana has surpassed Ethereum in weekly revenue generation for the first time in its history. According to Blockworks Research, SOL raked in around $25 million in the week ending July 22, surpassing ETH’s $21 million.
This exceptional performance can be attributed to a substantial uptick in transaction fees and tips associated with maximal extractable value (MEV). Data indicates that 58% of the revenue is derived from MEV tips, with another 37% stemming from priority transaction fees. The sustained engagement of decentralized exchanges (DEX) is identified as the primary catalyst for this growth.
Dan Smith, an analyst at Blockworks, highlights the significant benefits that Solana’s validators and stakers are reaping from the current crypto cycle. On July 28, the network even reached a record daily revenue peak of $5.5 million, marking its highest level in three months.
The surge in revenue can be largely attributed to the frenzy surrounding memecoins on Solana. Platforms like Pump.fun and Moonshot have ignited a flurry of intense trading activities, driving the network’s engagement to unprecedented levels. This trend, kickstarted by tokens like Bonk, has expanded to encompass a plethora of meme coins inspired by celebrities.
Nevertheless, this memecoin craze comes with its own set of risks. Analyst Slorg points out that even the most successful celebrity memecoins have experienced over a 70% drop in value within a month of their launch.
Despite the fluctuations in the memecoin space, Solana’s resilience shines through. The price of SOL has surged by over 4% in a week, indicating sustained interest from investors.
In summary, while Ethereum maintains its dominance with nearly $60 billion in total value locked (TVL) compared to Solana’s $5.5 billion, the gap between the two networks appears to be narrowing.
