Solana Tops Ethereum in Weekly Fees Amid Meme Coin Surge

Solana surpassed Ethereum in weekly total fees for the first time, generating approximately $25 million compared to Ethereum’s $21 million.

Solana has made significant strides in the cryptocurrency market, surpassing Ethereum in several key metrics. 

From breaking revenue records with its meme coin creation tool Pump.fun to achieving higher weekly total fees than Ethereum, Solana’s momentum shows no signs of slowing. 

Amidst this growth, analysts and community members are debating the future potential of Solana’s price, with some predicting it could reach unprecedented heights. 

Solana Surpasses Ethereum in Weekly Total Fees: A New Era for Layer-1 Blockchains

Solana has overtaken Ethereum in weekly total fees for the first time. During the week of July 22, Solana generated approximately $25 million in revenue compared to Ethereum’s $21 million, according to Blockworks Research. 

This milestone marks a significant achievement for Solana, often dubbed the “Ethereum killer,” and shows its growing prominence in the blockchain ecosystem.

A pivotal factor in Solana’s recent success is the burgeoning trend of celebrity coin trading, predominantly hosted on Solana-based meme coin platforms like Pump.fun and Moonshot. 

Memecoins, now exceeding $50 billion in total market capitalization, have been a major driver of activity on the Solana network. 

These platforms have captivated the market, attracting a frenzy of trading that has significantly boosted Solana’s fee revenue.

Solana’s total value locked (TVL) has seen a remarkable increase in 2024, tripling to around $5.5 billion, according to DefiLlama. On July 28, Solana recorded its highest daily total fees in three months, surpassing $5.5 million. 

The total fee data for Solana includes all forms of revenue for its validators, encompassing tips and maximum extractable value (MEV). 

Dan Smith, Blockworks’ data analytics manager, elaborated on the revenue composition in a post on X, stating that 58% of fee revenue came from MEV tips, while 37% was derived from priority transaction fees.

For the first time ever, Solana surpassed Ethereum in total transaction fees and MEV tips on the weekly timeframe ($25M vs $21M)

Solana validators and stakers are absolutely eating this cycle pic.twitter.com/kIIKVLUDPr

— Dan Smith | BWR (@smyyguy) July 29, 2024

“Solana validators and stakers are absolutely eating this cycle,” Smith noted.

According to 21.co’s Dune Analytics page, Solana stakers have earned cumulative rewards of over $32 million, with current yields around 7%. In comparison, Ethereum’s staking rewards offer a 3.3% annual percentage rate (APR), as reported by StakingRewards.com. This disparity in yields has further fueled interest in Solana as a lucrative staking option.

Despite Solana’s impressive gains, Ethereum remains the leader in total value locked, with nearly $60 billion, according to DefiLlama. Ethereum also hosts the largest number of protocols, boasting 1,135 as of the latest data. 

This extensive ecosystem of decentralized applications (dApps) and protocols continues to reinforce Ethereum’s position as a dominant force in the blockchain space.

The Downside of Celebrity Coins

However, the excitement surrounding celebrity coins on Solana has not been without its pitfalls. 

According to cryptocurrency analyst Slorg, most celebrity coins have experienced massive losses, with values plummeting by over 99% in many cases. Even the best-performing celebrity coins have seen declines of more than 70%.

List of celebrity-led memecoins pic.twitter.com/C8qViMNXEP

— newsOcrypt (@newsOcrypt) July 28, 2024

“Exactly half are down over 99%, with 7 others being down more than 90%. Let me remind you this is only about a month into their lifespan,” Slorg commented in a post on X.

The rivalry between Solana and Ethereum is likely to intensify as both blockchains continue to evolve and innovate. 

Solana’s recent achievements in surpassing Ethereum in weekly total fees and attracting significant activity through celebrity coin trading are indicative of its growing influence.

However, Ethereum’s robust ecosystem and leading TVL demonstrate its resilience and ongoing dominance.

As the blockchain landscape continues to develop, the dynamic between these two leading Layer-1 blockchains will be a key area to watch. 

Whether Solana can sustain its momentum and continue to challenge Ethereum’s supremacy remains to be seen, but its recent accomplishments have undoubtedly positioned it as a formidable contender in the blockchain arena.

Pump.fun Surpasses Ethereum in 24-Hour Revenue Amid Memecoin Frenzy

In a related development, Solana’s meme coin creation tool Pump.fun has once again outpaced Ethereum in 24-hour revenue. 

According to data from DefiLlama, Pump.fun generated approximately $864,000 over the last 24 hours as of midday on July 29, significantly surpassing Ethereum’s $550,000 during the same period.

This recent achievement is not an isolated incident. Pump.fun has previously eclipsed Ethereum’s revenue, most notably on June 30, when it reached an all-time high of nearly $2 million in 24-hour revenue, marginally surpassing Ethereum’s $1.91 million during the same timeframe. 

Pump.fun’s remarkable revenue figures are driven by a meme coin trading frenzy that predominantly occurs on its native Solana platform. 

The cumulative fee revenues of Pump.fun are approaching $75 million, as reported by DefiLlama, highlighting the platform’s sustained growth and profitability.

In the broader context of 24-hour revenue rankings, Pump.fun and Ethereum are placed third and fourth, respectively. 

Solana leads the pack with approximately $1.7 million, while Tron, a smart contract platform launched in 2018, ranks second with around $900,000.

Ethereum’s Position and TVL

Despite being surpassed in 24-hour revenue by Pump.fun, Ethereum remains the largest layer-1 smart contract platform, boasting nearly $60 billion in total value locked (TVL). It is essential to note that DefiLlama’s revenue data for Ethereum only accounts for burned ETH tokens, excluding gas fees. 

The surge in meme coin activity has been fueled by venture capital funding and political speculation, propelling the market capitalization of memecoins to over $53 billion, according to CoinGecko. 

Among the standout performers is Bonk (BONK), a dog-inspired Solana meme coin that has surged approximately 8,000% in the past year, now exceeding $1 billion in market capitalization, as reported by Coinranking.

Pump.fun distinguishes itself by offering users the ability to “launch a coin that is instantly tradeable for under $2 in one click.” 

The platform’s innovative “For You” algorithm curates a real-time feed based on users’ past actions, enhancing user engagement and personalization. This user-centric approach has resonated with the market, contributing to its impressive revenue performance.

Pump.fun’s appeal has been further bolstered by hosting meme coin launches for celebrities such as Caitlyn Jenner, Iggy Azalea, and Rich The Kid, among others. These high-profile endorsements have drawn significant attention to the platform, driving user interest and trading volumes.

The continuous outperformance of Pump.fun compared to Ethereum in terms of 24-hour revenue is indicative of shifting trends within the blockchain and cryptocurrency space. 

As the meme coin market continues to expand and attract new participants, platforms like Pump.fun and Solana are poised to capitalize on this momentum.

While Ethereum maintains its position as the leading layer-1 smart contract platform, the rise of competitors highlights the dynamic and evolving nature of the blockchain industry. 

The ongoing rivalry and innovation within this space will undoubtedly shape the future landscape of decentralized finance and digital assets.

Solana’s Meteoric Rise: Could $200 Be Just the Beginning?

Meanwhile, Solana is rapidly gaining traction in the cryptocurrency market, recently breaking through the significant $190 barrier. 

This surge in value has led to speculation that Solana could soon reach $200, positioning itself once again at the forefront of the crypto scene.

Chris Burniske, a former crypto analyst for Ark Invest, has fueled a debate among his followers by hinting that Solana’s price could eventually reach $1,000. 

$SOL to $1,000 could be conservative.

— Chris Burniske (@cburniske) July 28, 2024

While Burniske’s bold prediction remains somewhat unexplained, it reflects a growing optimism about Solana’s future potential. 

Despite the enthusiasm from Burniske and other supporters, there are those who remain skeptical, doubting that the current market cycle will allow for such a dramatic price increase.

Despite differing opinions, Solana’s recent performance has been impressive. The cryptocurrency’s trading volume is on the rise, and it has regained positions lost earlier in the year. This renewed energy in the market suggests that Solana might be poised for a significant recovery.

Technical indicators further support a positive outlook. Solana’s price movement has been characterized by rising highs and rising lows, indicating a strong bullish trend. 

The asset has effectively broken past key resistance levels, with $200 as its next significant target. If Solana can maintain its current momentum and surpass this threshold, it could be positioned for even greater progress.

Community Reaction

Burniske’s optimism has sparked considerable discussion within the crypto community. Supporters of Solana believe that the cryptocurrency has the potential to achieve unprecedented heights, driven by its robust technology and increasing adoption. On the other hand, skeptics argue that the market’s inherent volatility and external economic factors could hinder such ambitious price targets.

A closer look at Solana’s technical indicators reveals a promising outlook. The consistent pattern of rising highs and lows suggests a strong upward trend. 

If Solana can maintain this trajectory, breaking through the $200 mark could be the catalyst for further gains. 

The asset’s ability to overcome key resistance levels has instilled confidence among traders and investors, reinforcing the belief that Solana is on the verge of a significant breakthrough.

Solana’s ascent comes at a time when the broader cryptocurrency market is experiencing fluctuating fortunes. 

Major cryptocurrencies like Bitcoin and Ethereum continue to dominate the market, but Solana’s rapid rise is attracting attention from investors seeking alternative opportunities. The platform’s unique features, such as its high-speed transactions and low fees, make it an attractive option for developers and users alike.

Looking ahead, Solana’s potential for growth appears substantial. The ongoing development of its ecosystem, coupled with increasing adoption by decentralized applications (dApps) and decentralized finance (DeFi) platforms, positions Solana as a formidable contender in the crypto space. 

If the current bullish trend continues, reaching the $200 mark could be just the beginning of Solana’s upward journey.

Solana’s recent performance has solidified its reputation as a rising star in the cryptocurrency market. The break through the $190 barrier and the subsequent speculation about reaching $200 highlight the growing optimism surrounding this asset. 

While Chris Burniske’s $1,000 price target remains a topic of debate, Solana’s strong fundamentals and market momentum suggest that significant growth could be on the horizon.