Solana Achieves Record Network-Wide Revenue
Artificial Intelligence Summary
According to Cointelegraph, the layer-one blockchain Solana has once again achieved record network revenue, following its all-time high on October 22. Data from Blockworks Research indicates that on October 23, Solana generated nearly $8.7 million in economic value from network activity, up from less than $8 million the day before. This figure includes all revenue sources, including base fees, priority fees, and tips, among others.
Solana (SOL) has positioned itself as a formidable competitor to Ethereum, with the SOL token outperforming Ether (ETH) by nearly 600% since the start of 2023. The total value locked (TVL) on Solana has risen from less than $250 million at the start of the year to over $6.8 billion as of Oct. 24, according to DefiLlama. In July, Solana surpassed Ethereum in total weekly fees for the first time, clocking in nearly $25 million in weekly revenue compared to Ethereum’s $21 million, according to Blockworks Research.
Solana’s rise has been fueled by a surge in celebrity-driven cryptocurrency trading, particularly on Solana-based memecoin platforms like Pump.fun and Moonshot. Additionally, SOL is a strong candidate for listing on exchange-traded funds (ETFs) in the United States, following Bitcoin (BTC) and Ethereum (ETH).
On Oct. 21, Solana-based decentralized exchange Raydium outperformed Ethereum in 24-hour revenue, generating $3.4 million in fee revenue compared to Ethereum’s $3.35 million, according to DefiLlama. Ethereum is still recovering from a significant revenue drop following the network’s March upgrade, Dencun, which cut transaction fees by about 95%.
Despite these challenges, Ethereum is expected to generate up to $66 billion in annual free cash flow by 2030, according to Matthew Siegel, head of digital assets research at VanEck. Siegel noted that Ethereum processed nearly $4 trillion in settlement value over the past year and another $5 trillion in stablecoin transfers annually, positioning it as a major player in the financial ecosystem, similar to networks like Visa.
