Solana keeps setting new records in network fee revenue as it continues to establish itself as one of the fastest-rising layer-1 blockchains. According to data from Blockworks Research, Solana’s network activity on October 23 alone generated $8.7 million. This represented a notable increase from the previous day record of just under $8 million a day earlier. The figure, as it were, comes from a combination of base fees, priority fees, and tips.
Solana Emerges as Big Challenger to Ethereum
Solana’s impressive daily fee revenue, meanwhile, has not gone unnoticed. As data analytics manager at Blockworks, Dan Smith, puts it, the situation is merely showing its growing influence within the blockchain space.
For what it’s worth, Solana’s rise began in 2023, and since then, the network has kept up the momentum. By keeping up the pace, the platform has suddenly found itself in conversations and debates that repeatedly compare it with its biggest rival Ethereum.
For example, since that time, up to date, its native token, SOL, has outperformed Ethereum’s Ether (ETH) by 600% or thereabout. In addition to that, the total value locked (TVL) on Solana’s network has also increased massively. What used to be around $250 million in early 2023 is now over $6.8 billion as of October 24. That is, according to data from the DeFi analytics platform DefiLlama.
It might be worth noting that Solana’s rise to prominence has been immensely helped by a growing number of users trading celebrity coins on Solana-based platforms like Pump.fun and Moonshot.
Furthermore, Solana-based decentralized exchange Raydium recently surpassed Ethereum in daily fee revenue, generating $3.4 million on October 21 compared to Ethereum’s $3.35 million.
Also, its steady rise has positioned Solana as a likely candidate for inclusion in future U.S. exchange-traded funds (ETFs). Just right behind Bitcoin and Ethereum.Solana may be breaking daily records and ticking all the right boxes at the moment. However, the same cannot be said of Ethereum. The latter continues to struggle since its March Dencun upgrade that reduced transaction fees by 95%.
Despite the current situation, however, Ethereum remains a major force to reckon with. That is, as it is projected to generate up to $66 billion in free cash flow annually by 2030.
