With the increasing popularity of memecoin, daily revenue and transaction fees on Solana have reached record levels. Commonly referred to as the "Ethereum killer", Solana is currently outperforming its competitors in terms of speed and transaction efficiency.
This Blockchain has set records for Total Value Locked (TVL), transaction fees, and revenue. Let's analyze with Bitcoin Magazine the important data and technical reasons behind Solana's rapid rise.
Solana recently recorded $11.8 million in transaction fees in a single day, surpassing Ethereum's $6.32 million. This achievement is thanks to the Proof-of-Stake system, which allows Solana to generate lower transaction fees and faster speeds compared to Ethereum's Proof-of-Work mechanism. Solana's speed and efficiency have attracted users seeking a fast and cost-effective Blockchain solution.
On the same day, Solana generated $5.9 million in revenue, driven by increased activity in the Decentralized Finance (DeFi) sector and memecoins. Only Tether achieved higher revenue at $13.3 million.
The Total Value Locked (TVL) in Solana's DeFi ecosystem has increased to $8.35 billion, making it one of the leading DeFi ecosystems. TVL reflects the confidence and interest of investors. Currently, Solana's TVL is challenging Ethereum, which holds $20.5 billion. This achievement highlights Solana's potential to lead the Blockchain market by attracting liquidity and staking assets.
Raydium, the largest decentralized exchange on Solana, played a crucial role in this record-breaking performance. Within 24 hours, Raydium generated $15 million in transaction fees, becoming the largest revenue contributor to the network. During the same period, Raydium recorded $1 million in revenue, reflecting the high trading volume and strong user engagement.
Raydium stands out with its low fees and fast transaction speeds, attracting both individual and institutional investors. With the ability to process 65,000 transactions per second, Solana outperforms Ethereum, which can only handle 15-30 transactions per second. This technical advantage makes Solana an ideal platform for handling large trading volumes during market volatility.
Memecoins have become a strong trend, and Solana has capitalized on this opportunity through the Pump.fun issuance platform. This platform generated $2.4 million in revenue per day, surpassing Bitcoin's $2.3 million on the same day. This demonstrates the significant impact of memecoins on the Blockchain ecosystem, especially on networks capable of handling a large number of small transactions like Solana.
The wave of memecoin issuance on Pump.fun has driven revenue growth, thanks to the small but high-volume transactions. With its speed and extremely low transaction fees, Solana has become the perfect choice for this activity. Solana's infrastructure allows it to handle high trading volumes without increasing costs.
Pump.fun emphasizes that memecoins are not just a temporary trend, as they are driving the adoption of Blockchain technology. By attracting a wide range of investors, from experienced traders to newcomers, memecoins have helped boost activity on Solana, leading the network to new records.
The value of Solana's SOL token has risen sharply, reflecting its superior market performance. Over the past year, SOL has increased by 295%, bringing its market capitalization to $113 billion, making it the fourth-largest crypto asset by market cap. The gap with Tether ($130 billion) is steadily narrowing, indicating significant interest from traders and investors.
On November 19, SOL reached $247, the highest level since November 2021. Although it later declined slightly by 1.8%, closing at $238, the token is only about 8.7% away from its all-time high of $260. This price increase reflects investors' confidence in Solana's potential, especially as more projects are launching on this platform. The demand for using SOL for transactions, staking, and other activities has helped drive its soaring value.
Solana has achieved great success due to its significantly lower transaction fees compared to Ethereum. The average fee on Solana is $0.00025, while on Ethereum it is $4.12. This makes Solana more attractive, especially for small transactions or applications requiring high trading volumes, such as the Non-Fungible Token (NFT) and DeFi markets.
In terms of scalability, Solana stands out with the ability to process 65,000 transactions per second, compared to Ethereum's 15-30 transactions per second. This capability allows Solana to maintain speed and efficiency even when demand is high, while Ethereum often experiences congestion.
Although Ethereum remains the most renowned smart contract platform, Solana's recent achievements show that the network is increasingly gaining an advantage in the market.
Memecoins have driven record-breaking revenue, transaction fees, and Total Value Locked (TVL) on Solana. Platforms like Raydium and Pump.fun have played a crucial role in this success, demonstrating the power of memecoins and DeFi in driving Blockchain development.
With its scalable infrastructure, low fees, and high speed, Solana continues to challenge Ethereum's leading position and cement its place in the market.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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