Solana generates $8.7M in record fee revenue
Solana (CRYPTO:SOL) has achieved record-breaking revenue again, generating approximately $8.7 million from network activity on October 23.
This figure marks an increase from just under $8 million reported a day earlier, according to data provided by Blockworks Research.
The revenue includes all sources such as base fees, priority fees, and tips, as detailed by Blockworks’ data analytics manager, Dan Smith, on the X platform.
Since the start of 2023, Solana has emerged as a serious competitor to Ethereum (CRYPTO:ETH), with the SOL token outperforming Ether by around 600%.
The total value locked (TVL) on Solana skyrocketed from less than $250 million at the beginning of the year to over $6.8 billion by October 24, according to DefiLlama.
In July, Solana surpassed Ethereum in weekly total fees for the first time, earning approximately $25 million compared to Ethereum’s $21 million.
This growth has been fueled by a surge in celebrity coin trading on Solana-based memecoin platforms, such as Pump.fun and Moonshot.
Additionally, SOL is considered next in line for inclusion in exchange-traded funds (ETFs) in the United States after Bitcoin and Ethereum.
On October 21, the Solana-based decentralized exchange Raydium (CRYPTO:RAY) reported $3.4 million in fee revenue for a 24-hour period, surpassing Ethereum's $3.35 million in revenue.
Ethereum has been experiencing a revenue decline following its March Dencun upgrade, which reduced transaction fees by about 95%.
Despite this, Ethereum is projected to generate up to $66 billion in annual free cash flow by 2030, as noted by Matthew Sigel, head of digital asset research at VanEck.
Sigel added that Ethereum processed around $4 trillion in settlement value over the past year, indicating its growing significance in the financial landscape.
At press time, the Solana price was $177.13.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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