The Solana blockchain network has achieved a significant milestone by surpassing Ethereum in daily revenue, showcasing the continuous dynamism of the cryptocurrency sector. This notable event took place on May 12th when Solana’s total revenues, including transaction fees and Maximal Extractable Value (MEV), exceeded that of Ethereum, reaching approximately US$2.25 million compared to Ethereum’s US$1.98 million.
The Solana community widely celebrated this accomplishment, with many interpreting it as a sign that the network could soon outperform Ethereum in other aspects as well. Joe McCann, the founder of Asymmetric, expressed his thoughts on the matter, stating, “For the first time, Solana recently surpassed Ethereum in daily economic value.” He also drew attention to the difference in market value between the two cryptocurrencies, emphasizing that Solana is valued at only one-fifth of Ethereum.
Simultaneously, Ansem, a prominent influencer and marketer, highlighted Solana’s cost efficiency by tweeting, “[Solana] is still 100x cheaper for users to transact.” This comment provoked the Ethereum community, as it questioned the justification for Ethereum’s high market valuation.
However, not everyone agrees with this direct comparison. Leon Waidmann, an analyst at BTC-Echo, pointed out flaws in the comparison, noting that the data does not account for the Ethereum Layer 2 ecosystem. He emphasized that the analysis underestimates Ethereum’s contribution by solely considering the Ethereum main chain and disregarding the value of ETH as a payment method and transaction fuel for various Layer 2 networks.
Despite the celebration, Solana has experienced a significant increase in fees, which aligns with periods of high network congestion. This congestion has resulted in transaction execution failures, with over 60% of transactions failing in the past month, according to data from Dune Analytics.
Non-voting priority fees have become a significant part of Solana’s transaction revenue, playing a significant role in overall revenue growth. These fees enable users to prioritize their transactions, ensuring execution even during times of high demand.
Although Solana has recently achieved success in terms of revenue, Ethereum continues to dominate in several key metrics, including decentralized exchange volume and total value locked in DeFi. Recent data shows that Ethereum maintains a substantial advantage over Solana in these areas, solidifying its position as a leader in various aspects within the web3 space.
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