For the first time since its inception, Solana has outpaced Ethereum in terms of total fees and MEV tips over a weekly period.
Revenue Breakdown
Blockworks Research reported that during the week of July 22, Solana generated around $25 million in revenue, surpassing Ethereum’s $21 million.
As of the time of reporting, SOL was trading at $185.8 amid a broader market downturn, having reached a high of $193.8 earlier in the day, according to CryptoSlate data.
Detailed Revenue Insights
Dan Smith, an analyst at Blockworks, explained that the total fee data encompassed all forms of revenue for Solana validators, including tips and maximum extractable value (MEV). He pointed out that 58% of the fee revenue originated from MEV tips, while 37% came from priority transaction fees.
The network achieved $5.5 million in daily revenue on July 28, marking the highest in three months. These milestones underscore the increasing traction and user engagement on the Solana network in recent months.
Mert Mumtaz, CEO of Helius Labs, noted that on July 28, Solana’s revenue exceeded that of Ethereum, Arbitrum, and Base combined, even without factoring in MEV tips.
Network Activity and Challenges
However, Mumtaz also observed that a significant portion of the high trading volumes on Solana DEXs was not genuine, with much of the volume attributed to “wash trading.”
Despite these recent achievements, Ethereum continues to lead in total value locked (TVL), holding nearly $60 billion—more than ten times higher than Solana’s approximately $5.5 billion, according to DefiLlama.
Memecoin Frenzy
The surge in Solana’s fees can be linked to increased activity on its network, particularly within memecoin trading platforms like Pump.fun and Moonshot.
These platforms have spearheaded a memecoin trading frenzy, significantly boosting Solana’s market presence. The ease of access and the ability for anyone to launch their token have led to a dramatic rise in memecoin trading since late 2022.
This 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 perceived as “meme-worthy.”
Despite the craze, many of these tokens lost most, if not all, of their value within weeks of their launch, with many celebrities subsequently abandoning the projects.
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