Solana Surpasses Ethereum in Daily Revenue After Explosive Rate Increase

The Solana blockchain network has reached a significant milestone by surpassing Ethereum in daily revenue, highlighting the continued dynamism in the cryptocurrency sector. This event occurred on May 12, when Solana’s total revenues, adding transaction fees and Maximal Extractable Value (MEV), surpassed those of Ethereum, reaching approximately US$2.25 million compared to US$ 1.98 million.

The feat was widely celebrated by the Solana community, with many seeing it as an indication that the network could soon overtake Ethereum in other aspects as well. Joe McCann, founder of Asymmetric, commented on the event, saying: “For the first time, Solana recently eclipsed Ethereum in daily economic value.” He also pointed to the disparity in market value between the two cryptocurrencies, highlighting that Solana is valued at just a fifth of Ethereum.

In parallel, Ansem, a prominent influencer and marketer, highlighted Solana’s cost efficiency, tweeting: “[Solana] it is still 100 times cheaper for users to transact.” He provoked the Ethereum community by questioning the justification for its high market valuation.

However, not everyone agrees with this direct comparison. Leon Waidmann, an analyst at BTC-Echo, pointed out flaws in the comparison, noting that the data does not include the Ethereum Layer 2 ecosystem. “It is crucial to remember that this comparison only includes the Ethereum main chain, not accounting for the value of ETH as a payment method and fuel for transactions for various Layer 2 networks,” he said, indicating that the analysis underestimates Ethereum’s contribution.

For the first time ever, @solana has recently eclipsed @ethereum in daily economic value or “revenue” for Boomers.

Friendly reminder that $SOL is currently 1/5th the value of $ETH. pic.twitter.com/darZVOXDYz

— ◢ J◎e McCann 🧊 (@joemccann) May 14, 2024

Despite the celebration, Solana fees have seen a significant increase, which coincides with periods of high network congestion. This congestion has led to transaction execution failures, with more than 60% of transactions failing in the last month, according to data from Dune Analytics.

Non-voting priority fees have been a growing part of Solana’s transaction revenue, contributing significantly to overall revenue growth. Such fees allow users to prioritize their transactions, ensuring execution even during high demand.

Despite Solana’s recent success in terms of revenue, Ethereum continues to dominate in several key metrics such as decentralized exchange volume and total value locked in DeFi. According to recent data, Ethereum maintains a substantial advantage over Solana in these areas, reinforcing its position as a leader on several fronts within the web3 space.

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