The potential for Solana to surpass Ethereum in transaction fees could be a significant milestone for Solana’s reputation as an “Ethereum-killer.” According to Dan Smith, a senior research analyst at Blockworks, Solana could overtake Ethereum’s transaction fees as early as this week, as stated in a post on May 7.
The concept of Maximal Extractable Value (MEV) refers to the profits that can be obtained through arbitrage trading on protocols. MEV measures the maximum value that can be extracted from a blockchain by an individual or a group of users.
Furthermore, on May 7, Solana’s total economic value of $2.8 million was close to Ethereum’s $3.1 million, according to Smith’s post.
However, Solana’s daily transaction fees still fall behind Ethereum’s. In the past 24 hours, Ethereum generated over $2.75 million in fees, while Solana generated $1.49 million, based on data from DefiLlama.
When considering the total value locked (TVL), Solana’s TVL of $3.94 billion is only a small fraction, around 7.4%, of Ethereum’s TVL of over $53 billion.
Solana, which launched on mainnet in March 2020, claimed to have a throughput of 50,000 transactions per second (TPS). It aimed to address the scalability and inefficiency issues of Ethereum as an “Ethereum-killer” by adopting a monolithic approach to create its own scalable and low-fee blockchain network.
However, Solana’s approach faced criticism due to previous outages. In early April, the high demand for memecoins caused approximately 75% of Solana transactions to fail, overwhelming the network. Additionally, on February 6, block production on Solana halted for about five hours before engineers and validators were able to restart the network, according to Solana’s status page.
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