Originally published on: November 12, 2024
In a surprising turn of events, Solana has surpassed Ethereum in terms of economic activity for the first time in October 2024. This achievement comes as a result of Solana’s steady growth and increasing market share compared to the dominant Ethereum network.
According to a recent report by Syncracy Capital, Solana’s real economic value (REV) exceeded Ethereum’s by 111% in October 2024, a significant growth from just 1% the previous year. This metric takes into account transaction fees and maximal extractable value (MEV) tips paid to validators, showcasing the network’s economic performance.
Syncracy Capital also analyzed the total application revenue (TAR) of both Solana and Ethereum, revealing that Solana’s TAR was 109% of Ethereum’s in October 2024, a remarkable increase from 1% in the previous year. This data points to the rising popularity and adoption of Solana among users and developers.
One of the driving factors behind Solana’s economic surge is the increasing interest in memecoins within the ecosystem. Memecoins like Goatseus Maximus (GOAT), SPX6900 (SPX), Apu Apustaja (APU), and FWOG saw substantial gains in market cap and user engagement, contributing to higher network volumes and fees.
Despite concerns about the sustainability of Solana’s memecoin activity, Syncracy Capital views this trend as a valuable stress test for the network’s reliability. The network has experienced occasional outages in the past but continues to attract decentralized infrastructure (DePIN) protocols, further validating its potential for long-term growth and development.
Looking ahead, Solana plans to release the full version of the Firedancer upgrade in 2025 to support its expanding activity and ecosystem. As Solana solidifies its position as a key player in the blockchain industry, it will be interesting to see how it competes with Ethereum and other leading networks in the future.
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