Solana, the Layer-1 blockchain, has once again achieved record-breaking network revenues. According to data from Blockworks Research, Solana generated $8.7 million in economic value from network activity on October 23, surpassing the previous day’s revenue of just under $8 million. This figure includes various revenue sources such as base fees, priority fees, and tips.
Solana (SOL) has emerged as a strong competitor to Ethereum, with the SOL token outperforming Ether (ETH) by a staggering 600% since 2023. The total value locked (TVL) on Solana has skyrocketed from less than $250 million at the beginning of 2023 to over $6.8 billion as of October 24, according to data from DefiLlama.
In July, Solana surpassed Ethereum in weekly total fees, generating approximately $25 million in weekly revenue compared to Ethereum’s $21 million, as reported by Blockworks Research. Solana’s rise has been boosted by the popularity of celebrity coin trading on Solana-based memecoin platforms like Pump.fun and Moonshot.
Furthermore, SOL is expected to be included in exchange-traded funds (ETFs) in the United States, positioning it after Bitcoin (BTC) and ETH. On October 21, Solana-based decentralized exchange Raydium even surpassed the Ethereum network in 24-hour revenue. Raydium recorded $3.4 million in fee revenue, while Ethereum generated $3.35 million, according to DefiLlama’s data on daily protocol fee revenue.
Ethereum is still recovering from a significant decline in revenue following the March Dencun upgrade, which reduced transaction fees by approximately 95%. However, the Ethereum network is projected to generate up to $66 billion in annual free cash flow by 2030, according to Matthew Sigel, VanEck’s head of digital asset research. Sigel stated that Ethereum’s settlement value and stablecoin transfers have reached approximately $4 trillion and $5 trillion respectively in the past year, making it larger than PayPal and approaching networks like Visa.