Solana Generated More Weekly Revenue than Ethereum for the First Time in Its History

Data from blockchain research firm, Blockworks, has shown that for the first time in its history Solana last week generated more weekly revenue than Ethereum.

Solana network validators earned an impressive total of US$25 million (AU$38m) in revenue last week, according to data from blockchain research firm Blockworks. This marks the first time in Solana’s history that it has generated more weekly revenue than Ethereum, which earned US$21 million (AU$32m) during the same period.

The total revenue includes regular transaction fees, maximum extractable value (MEV) tips and priority transaction fees. On July 28, Solana also achieved its highest single daily revenue total in three months, clocking in at US$5.5 million (AU$8.4m).

According to Blockworks analyst Dan Smith, the majority of Solana’s record daily revenue on July 28 came from spot DEX trading based on MEV tips, which accounted for 58%. Meanwhile, priority transaction fees made up 37% of the total.

Solana generated $5.5M in total fees yesterday, the highest amount over the last three months 58% of the value came from MEV tips and 37% from priority transaction feesMost of the activity is from spot DEX trading pic.twitter.com/QxEfCuVmbQ

Smith did not specify how much of Solana’s monthly revenue came from MEV activity, only stating that the combined total of MEV and transaction fees amounted to US$25 million — just barely edging out Ethereum’s total of US$21 million.

“This is turning out to be a great cycle for Solana validators and stakers,” Smith noted.

For those who aren’t DeFi die-hards, MEV is a type of revenue that miners or validators can earn by accepting payments — like bribes — to change the order of transactions within blocks. This allows traders to pay to use strategies like front-running, which is strictly forbidden in traditional markets.

MEV is considered an integral part of DeFi, reflecting its decentralised nature and generating huge revenues for networks like Ethereum and Solana. However, it has also been criticised for allowing some market participants to pay to gain an unfair advantage over other traders.

2024 has been good to Solana

Solana has seen significant growth so far in 2024, largely due to the explosion of memecoin activity on the network. As of today, according to CoinGecko, memecoins on Solana now have a combined market cap of over US$9 billion (AU$13.7b) dollars.

Of course, as is often the case with memecoins, many of these coins have lost a huge amount of their value in a very short period of time and many who bought them have lost money.

According to crypto analyst and X / Twitter user Slorg, of the celebrity-backed memecoins launched on Solana in the last month by such reputable figures as Hulk Hogan, Andrew Tate and Barron Trump, most have seen their values decline by over 99%, with even the best performing coins losing over 70% of their value in just a few weeks:

Another stat that reflects Solana’s strong first half year is the growth of total value locked (TVL) on the network. According to data from DefiLlama, since the start of 2024 Solana’s TVL has more than tripled, soaring from US$1.417 billion (AU$2.168bn) on January 1 to US$5.496 billion (AU$8.4bn) today.

For TVL though, Ethereum remains the clear leader, with over US$60 billion (AU$91.6bn) of value locked on the OG smart contract platform.

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