Originally published on: October 28, 2024
Solana has made a significant milestone by surpassing Ethereum in daily network fee generation, showcasing a rise in user engagement on the world’s third-largest blockchain.
In the past 24 hours, Solana has generated over $2.54 million in fees, outperforming Ethereum’s $2.07 million on Oct. 28. This achievement now ranks Solana as the fifth-largest fee-generating protocol in the crypto space, according to data from DefiLlama.
The surge in Solana’s fees is closely linked to the increase in trading activity on its popular decentralized exchange, Raydium, which has generated over $3.41 million in fees on the Solana blockchain in the past 24 hours.
Often dubbed as an “Ethereum killer,” Solana’s approach to monolithic scaling aims to enhance transaction throughput and reduce fees without the need for layer 2 (L2) blockchains. This is in contrast to Ethereum’s reliance on L2 solutions for scalability, which some critics argue diverts value away from the Ethereum mainnet.
Despite Solana’s recent success, it still falls short of Ethereum in terms of overall transaction fees. Over the past 30 days, Ethereum has generated nearly $134.6 million in fees, solidifying its position as the leading blockchain and third-largest protocol by fees.
During the same period, Solana generated $61.3 million in monthly fees, accounting for approximately 45% of Ethereum’s 30-day total, as per DefiLlama data.
Interestingly, a significant portion of Solana’s monthly revenue came from memecoins. More than 47% of Solana’s monthly revenue was attributed to transactions on the memecoin launchpad Pump.fun, contributing around $29.5 million to Solana’s $61.7 million in fees over the past month.
Although interest in Solana-based memecoins surged earlier this year, with new memecoins attracting over $100 million in investments by March, there are risks associated with memecoin trading. For instance, 98.6% of memecoins on Pump.fun never make it to Raydium, highlighting the volatile nature of this market.
In conclusion, Solana’s recent accomplishment in surpassing Ethereum in daily fees is a testament to its growing popularity and user engagement. As the crypto space continues to evolve, it will be interesting to see how Solana’s unique approach to scaling and fee reduction impacts its position in the market.
