Solana has recently achieved a significant milestone by surpassing Ethereum in total transaction fees and maximum extractable value (MEV) tips for the first time in a weekly timeframe since its launch. Data from Blockworks Research shows that Solana generated around $25 million in revenue during the week of July 22, exceeding Ethereum’s $21 million. This achievement was highlighted by Dan Smith, a Blockworks analyst, who noted that Solana validators and stakers are reaping significant benefits during this period.
The network also reached another record on July 28, generating $5.5 million in daily revenue, the highest in three months. This revenue includes all forms of income for Solana validators, such as tips and MEV. According to Blockworks Research data, 58% of the fee revenue came from MEV tips, while 37% was from priority transaction fees. The majority of the revenue-driving activity originated from spot decentralized exchange (DEX) trading.
Mert Mumtaz, CEO of Helius Labs, further emphasized this milestone by stating that Solana had generated more revenue than Ethereum, Arbitrum, and Base combined. This achievement highlights the profitability of staking with Solana validators. However, Dan clarified that this revenue was solely from transaction fees, excluding tips. Despite this success, Ethereum remains the dominant leader in Total Value Locked (TVL), with almost $60 billion and hosting the largest number of protocols at 1,135.
The boost in Solana’s revenue can be attributed to increased activity on its network, particularly through meme coin trading platforms like Pump.fun and Moonshot. These platforms sparked a meme coin trading frenzy, significantly enhancing Solana’s market presence. The trend started with tokens like Bonk and evolved into a culture of meme coins named after public figures and celebrities. However, many of these tokens quickly lost value after launch, with celebrities also abandoning their projects.
Cryptocurrency analyst Slorg pointed out in a thread that even the “best performing” celebrity meme coins are down more than 70%, with half down over 99% and seven others down more than 90% within a month of their launch. This trend highlights the volatility and risk associated with meme coin trading. Despite the ups and downs, Solana’s revenue continues to see growth, attracting more users and investors to the network. The future of Solana looks promising as it competes with Ethereum in generating revenue and activity in the cryptocurrency market.
