Originally published on: November 12, 2024
In a surprising turn of events, the Solana network has surpassed Ethereum in key economic metrics for the first time in October 2024, according to a recent report by Syncracy Capital.
The report highlights Solana’s remarkable growth, with its real economic value (REV) reaching 111% of Ethereum’s REV in October, a significant leap from just 1% a year ago. This increase is attributed to transaction fees and maximal extractable value (MEV) tips paid to validators, indicating a thriving economic activity on the network.
Additionally, Solana’s total application revenue (TAR) exceeded Ethereum’s by 109% in October 2024, compared to a mere 1% the previous year. This surge in economic activity can be largely credited to the memecoin mania, with new memecoins like Goatseus Maximus (GOAT) gaining substantial traction within the ecosystem.
The increased interest in these memecoins has resulted in higher network volumes, fees, and total value locked (TVL) on Solana. Data from DefiLlama shows that Solana’s TVL hit a two-year high in October, surpassing Ethereum’s locked value during the same period.
Despite the debates on the long-term sustainability of Solana’s memecoin activity, Syncracy views this trend as a valuable stress test for the network’s reliability. With plans to release a full version of the Firedancer upgrade in 2025, Solana is gearing up to accommodate its growing activity and solidify its position in the blockchain ecosystem.
From attracting decentralized infrastructure (DePIN) protocols to hosting a growing number of application unicorns, Solana is making significant strides in the crypto industry. Stay tuned for more updates on Solana’s economic achievements and its impact on the market.
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