PANews, November 10 news, Coinbase's head of institutional research and institutional research analyst David Duong and David Han pointed out in a report released this week that if the trading ecosystem on the Solana chain is viewed as an 'independent financial category', it currently ranks third in profitability, only behind stablecoins and Layer 1. David Duong noted: 'Trading-related activities on Solana typically account for 75-90% of on-chain fee revenue, significantly higher than other networks such as Ethereum, Base, and Arbitrum. While layer 2 solutions also show growth and innovation, they generally face different scalability challenges and user fragmentation issues compared to Solana. The fee dynamics and user activity patterns on Solana remain distinctive.'
The analysis also pointed out that meme tokens have been the core narrative of this bull market and are the best-performing cryptocurrency sector this year (measured by total market cap growth). Most of the activity has taken place on Solana, primarily revolving around the increasing popularity of pump.fun as the main Memecoin launch platform. To date, more than 3 million tokens have been issued on pump.fun, and the dominance of trading-related activities on Solana is reflected in its contribution to network transaction fees, accounting for over 82% of all non-voting fees paid on the network.
