Solana Sets New Record with $8.7 Million in Network Revenues

Solana's Record-Breaking Network Revenues

According to Cointelegraph, Layer-1 blockchain Solana has achieved record-breaking revenues, surpassing its previous all-time high on October 22. Data from Blockworks Research shows that on October 23, Solana generated approximately $8.7 million in economic value from its network activities, up from just under $8 million the day before. This revenue encompasses all sources, including base fees, priority fees, and tips.

Competition with Ethereum

Solana (SOL) has emerged as a formidable competitor to Ethereum, with the SOL token outperforming Ether (ETH) by around 600% since the start of 2023. The total value locked (TVL) on Solana has skyrocketed from less than $250 million at the beginning of the year to over $6.8 billion as of October 24, according to DefiLlama.

Weekly Fees Comparison

In July, Solana made headlines by surpassing Ethereum in weekly total fees for the first time, generating around $25 million in weekly revenue compared to Ethereum’s $21 million, as reported by Blockworks Research.

Factors Contributing to Solana's Rise

The ascent of Solana has been further supported by a surge in celebrity coin trading, primarily occurring on Solana-based memecoin platforms such as Pump.fun and Moonshot. Additionally, SOL is being viewed as a strong candidate for inclusion in exchange-traded funds (ETFs) in the United States, alongside Bitcoin (BTC) and ETH.

An Overview of Raydium's Performance

On October 21, the Solana-based decentralized exchange Raydium outperformed Ethereum in 24-hour revenue, bringing in $3.4 million in fee revenue. In contrast, Ethereum generated $3.35 million, according to DefiLlama.

Ethereum's Recovery

Despite Solana's rapid growth, Ethereum is still in the process of recovering from a notable revenue decline that followed the network’s March Dencun upgrade, which effectively reduced transaction fees by approximately 95%.

Conclusion

As Solana continues to establish itself as a leader in the blockchain space, its impressive growth in network revenues and total value locked positions it favorably against established competitors like Ethereum. It will be interesting to see how the dynamics of the blockchain space evolve as Solana and Ethereum vie for dominance in the coming months.