Solana surpassed Ethereum in total fees and MEV tips for the first time in a weekly timeframe since its launch.
According to Blockworks Research, Solana generated approximately $25 million in revenue during the week of July 22, edging out Ethereum’s $21 million.
SOL was trading at $185.8 as of press time amid the wider market downturn after hitting a high of $193.8 earlier in the day, based on CryptoSlate data.
Revenue breakdown
Blockworks analyst Dan Smith noted that the total fee data includes all forms of revenue for Solana validators, such as tips and maximum extractable value (MEV). He elaborated that 58% of the fee revenue came from MEV tips, while 37% was derived from priority transaction fees.
Meanwhile, the network generated $5.5 million in daily revenue on July 28, the highest in three months. These significant milestones highlight the growing traction and user engagement on the Solana network in recent months.
Helius Labs CEO Mert Mumtaz highlighted that the network had generated more revenue on July 28 than “Ethereum, Arbitrum, and Base combined” without including MEV tips.
However, he also noted that the high trading volumes on Solana DEXs were not genuine, with much of the volume connected to “wash trading.”
Despite the network’s recent achievements, Ethereum remains the leader in total value locked (TVL), holding nearly $60 billion — more than 10x higher than Solana’s roughly $5.5 billion, according to DefiLlama.
Memecoin frenzy
The surge in fees for Solana can be attributed to the increased activity on its network, particularly within memecoin trading platforms like Pump.fun and Moonshot.
These platforms have been at the forefront of a memecoin trading frenzy that has significantly boosted Solana’s market presence. The ease of access and the ability for anyone to launch their own token has led to a dramatic rise in memecoin trading since the end of 2022.
The trend began with the rise of tokens like Bonk and has evolved into a culture of memecoins named after politicians, celebrities, pets, and anything else that someone believes may have “meme-worthiness.”
Despite the craze, many of these tokens lost most, if not all, of their value within a few weeks of launch, and many celebrities seem to have subsequently abandoned the projects.
At the time of press 10:09 pm UTC on Jul. 29, 2024, Solana is ranked #4 by market cap and the price is up 0.31% over the past 24 hours. Solana has a market capitalization of $86.33 billion with a 24-hour trading volume of $3.45 billion. Learn more about Solana ›
At the time of press 10:09 pm UTC on Jul. 29, 2024, the total crypto market is valued at at $2.41 trillion with a 24-hour volume of $80.61 billion. Bitcoin dominance is currently at 55.10%. Learn more about the crypto market ›
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