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Solana, a leading Layer-1 blockchain, achieved a new milestone in fee revenue, generating $8.7 million in economic value from network activity on October 23. This marked a noticeable rise from $8 million the previous day, as reported by Blockworks Research. The revenue increase includes base fees, priority fees, tips, and other income sources that continue to reinforce Solana’s growing network demand.
Competing with Ethereum
Solana’s momentum as a significant Ethereum competitor has only strengthened. Since 2023, Solana’s native token, SOL, has outperformed Ether by an impressive 600%, reflecting a shift in user and investor interest. The blockchain’s Total Value Locked (TVL) has surged from $250 million at the beginning of 2023 to over $6.8 billion as of October 24, according to DefiLlama data. This increase emphasizes Solana’s expanding influence in decentralized finance.
Revenue Rivalry: Solana Surpasses Ethereum
In July, Solana outpaced Ethereum in weekly fee generation, recording approximately $25 million in weekly revenue compared to Ethereum’s $21 million. Solana’s rising revenue streams have largely been driven by high-profile coin trading on platforms like Pump.fun and Moonshot, both popular Solana-based memecoin exchanges.
On October 21, Solana’s decentralized exchange, Raydium, set a record by surpassing Ethereum in daily revenue, earning $3.4 million in fees compared to Ethereum’s $3.35 million, as per DefiLlama’s protocol fee data.
ETFs and the Future of SOL
SOL is also seen as a contender for inclusion in exchange-traded funds (ETFs) within the U.S., following in the footsteps of Bitcoin (BTC) and Ethereum. This potential ETF integration adds further anticipation for Solana’s growth and institutional acceptance.
Ethereum’s Fee Adjustments Post-Dencun
Ethereum, while still dominant, is adapting to changes after its March Dencun upgrade reduced transaction fees by 95%, leading to a temporary drop in revenue. Despite this, Ethereum remains a high-value network, with VanEck’s head of digital asset research, Matthew Sigel, projecting up to $66 billion in annual free cash flow by 2030. According to Sigel, Ethereum processed around $4 trillion in settlement value and an additional $5 trillion in stablecoin transfers over the last year, underscoring its scale against traditional payment networks.
