Crypto: Solana Surpasses Ethereum on a Key Market Metric

On October 28, 2024, Solana generated more daily fees than Ethereum for the first time. This turnaround highlights Solana’s growing appeal to crypto users, who prioritize fast and inexpensive transactions in a sector where efficiency is increasingly valued. Ethereum has long dominated as the benchmark for decentralized applications and smart contracts, so this surpassing symbolizes the rise of new options that challenge its status.

The Rise of Solana Over 24 Hours

A Long-Lasting Domination by Ethereum

Despite this remarkable performance by Solana over a 24-hour period, Ethereum remains, in the long run, the main protocol in terms of fees generated. Over the last 30 days, Ethereum has accumulated nearly $134.6 million in fees, far exceeding the $61.3 million generated by Solana. Over a longer period, Ethereum still demonstrates superiority in terms of fees and user activity, which underscores its leading position despite scalability challenges. This supremacy is largely explained by the fact that Ethereum remains the reference blockchain for smart contracts and decentralized applications, attracting more robust and diverse projects.

Moreover, a significant portion of Solana’s revenue comes from more speculative activities, such as the memecoin market. Indeed, nearly 47% of Solana’s monthly fees, or about $29.5 million, were generated through the Pump.fun platform, a service related to the launch of memecoins. While this indicates a certain excitement surrounding Solana, it raises concerns about the sustainability of this trend. In comparison, Ethereum benefits from a more mature and diverse ecosystem, which protects it from sudden fluctuations related to more speculative markets.