According to Michael Nadeau, founder of The DeFi Report, while Solana has received inflows from other blockchains, most of that value has returned to Ethereum.

In a post on X, Nadeau said Solana ($SOL
) needs to attract total blockchain value (TVL) from Ethereum and Layer 2 networks.

"[...] But the only thing that really matters to Solana is extracting #tvl from Ethereum (and L2). Why? That's where all the value is today. Is that happening? Not really,” he wrote.

Citing data from crypto platform Artemis, Nadeau highlighted that Solana has lost about $55 million in TVL to Base, Optimism and Arbitrum since the beginning of the year (YTD).

More than $1 billion has returned to Ethereum

Nadeau said Solana saw $2.36 billion in inflows from Ethereum on the YTD chart. However, more than $1 billion returned to Ethereum, which is 42% of the total.

He added that YTD flows into Solana from Ethereum were “modest,” accounting for just 2.7% of the blockchain's TVL.

At the time of writing, data provider DefiLlama shows that Ethereum has more than $50 billion in TVL.

Nadeau said that while Ethereum has had $6 billion in net outflows since the beginning of the year, 83% of that has gone into Layer 2 blockchains that are still in the ecosystem.

He said these assets will continue to add value to Layer 1 as much of the value that has left the blockchain is used in its ecosystem.

Solana surpasses Ethereum in blockchain fees

Meanwhile, on October 28, Solana surpassed Ethereum in daily commissions. At the time, Solana generated more than $2.54 million in commissions within 24 hours, surpassing Ethereum's $2.07 million, making Solana the fifth highest commission-generating protocol that day.

The surge in blockchain commissions was attributed to increased activity on Raydium (RAY), a decentralized exchange (DEX) and automated market maker built on Solana.
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