Originally published on: October 28, 2024
Solana has made waves in the crypto world by surpassing Ethereum in daily network fee generation, signaling a surge in user activity on the third-largest blockchain globally. In the last 24 hours alone, Solana has racked up over $2.54 million in fees, overshadowing Ethereum’s $2.07 million on Oct. 28, according to DefiLlama data.
The momentum behind Solana’s rising fees can be attributed to the increasing trading activity on its popular decentralized exchange (DEX), Raydium, which has generated an impressive $3.41 million in fees on the Solana blockchain within the same timeframe.
Often hailed as an “Ethereum killer,” Solana’s approach to monolithic scaling aims to boost transaction throughput and lower fees without the need for layer 2 (L2) blockchains. In contrast, Ethereum relies on L2 solutions for scalability, a structure that some critics argue dilutes value from the mainnet to side chains.
Despite Solana’s recent surge, Ethereum still maintains its dominance in transaction fees over a longer period. In the past 30 days, Ethereum has generated a staggering $134.6 million in fees, solidifying its position as the leading blockchain and third-largest protocol by fees.
Comparatively, Solana has generated $61.3 million in monthly fees within the same timeframe, making up approximately 45% of Ethereum’s 30-day total, according to DefiLlama data.
Interestingly, nearly half of Solana’s monthly revenue stems from activities related to memecoins. Pump.fun, a memecoin launchpad, contributed a significant portion of Solana’s $61.7 million in fees over the past month, driving over 47% of the blockchain’s revenue.
While the interest in Solana-based memecoins has surged significantly, caution is advised as almost 98.6% of memecoins on Pump.fun do not make it to Raydium, underscoring the risks associated with memecoin trading.
As the crypto landscape continues to evolve, Solana’s impressive performance against Ethereum raises intriguing possibilities for the future of blockchain technology and decentralized finance. Subscribe to our Finance Redefined newsletter for more insights on the latest DeFi developments and financial opportunities.
