Solana surpassed Ethereum in daily network fees. According to DefiLlama data, Solana generated more than $2.54 million in fees in the past 24 hours, surpassing Ethereum's $2.07 million as of October 28. This makes Solana the fifth largest blockchain by fee income in the crypto market.
Solana's growth is primarily due to the high activity of Raydium, a leading decentralized exchange (DEX). Raydium alone generated $3.41 million in fees in just one day.
Solana is often considered an “Ethereum killer” due to its monolithic approach to scaling and ability to maximize transaction throughput while reducing costs without the need for layer 2 (L2) scaling solutions.
Ethereum, on the other hand, relies on L2 scaling solutions to manage increased network activity. However, some believe that this setup could weaken key networks.
“Solana will flip Ethereum on transaction fees and acquired MEV this month, possibly even this week,” Blockworks analyst Dan Smith told X earlier this year.
MEV (Maximum Extractable Value) refers to the additional profit that users can earn through advanced transaction technology on blockchains like Solana.
However, even though Solana charges significantly more fees per day, it still generates less revenue than Ethereum in the long run. In the past 30 days, Ethereum earned about $134.6 million in fees, nearly double Solana's $61.3 million.
Almost half of Solana's recent fees came from memecoin trading on Pump.fun, a platform on Solana that generated about $29.5 million in fees for the network last month.
Additionally, this growth can sometimes put stress on the Solana network. Earlier this year, 75% of Solana trades failed due to a huge spike in meme coin trading.
On April 4, Solana stopped processing transactions for five hours, showing that it still faces challenges as it grows to meet user demand.
Also read: Solana price prediction: SOL rises significantly, traders shift to rivals
