Solana ($SOL) has etched a new milestone, surpassing Ethereum ($ETH) in total weekly transaction fees for the first time.
Data from Blockworks revealed that during the week of 22 July, Solana recorded approximately $25 million in transaction fees, compared to Ethereum’s roughly $21 million.
This marked a significant achievement for Solana, highlighting its growing adoption and usage in the blockchain space.
Solana also saw its daily transaction fees peak at around $5.5 million, the highest in three months.
Blockworks’ Senior Research Analyst, Dan Smith, provided insight into the composition of these fees.
According to Smith, 58% of the value came from maximum extractable value (MEV) tips, while 37% originated from priority transaction fees.
The primary driver of this activity was spot decentralised exchange (DEX) trading. Recently, Solana’s DEX trading volumes has overshadowed Ethereum and other major blockchain networks.
According to DefiLlama, Solana reached $2 billion in a single day in its DEX trading volume. This was particularly driven by the launch of a new memecoin called Neiro, which has sparked significant trading activity.
Neiro follows in the footsteps of Dogecoin but with a unique twist – the Shiba Inu behind Neiro is reportedly owned by the same person who owns the dog that inspired Dogecoin. This connection has fueled speculation and trading fervour on Solana’s DEXs.
Last month, on 12 May, Solana also outpaced Ethereum in total economic value (TEV) for a single day. TEV includes both transaction fees and MEV.
On that day, Solana accumulated over $2.2 million, surpassing Ethereum’s $1.97 million. This milestone indicated Solana’s increasing role in the crypto ecosystem, especially amid the memecoin craze.
Despite Solana’s impressive performance in transaction fees, Ethereum still leads in total value locked (TVL).
Ethereum’s TVL stands at over $58 billion, dwarfing Solana’s $5.5 billion. However, Solana’s TVL has risen by 25.68% over the past month, while Ethereum’s TVL decreased by 1.77%.
Several factors contribute to Solana’s recent successes. Known for its high scalability and transaction speed, Solana can handle thousands of transactions per second (TPS), far outpacing Ethereum.
This capability makes it an attractive platform for developers and users seeking efficiency and lower costs.
A near yearly high soon?
Solana’s native token $SOL is on track to end July with a 30% monthly return, setting the stage to challenge its yearly high of around $210 in the coming weeks.
The coin recently crossed the $185 mark. The current focus is on breaking the $192 resistance level, setting the stage for a possible bull run.
Over the past month, $SOL’s price has surged by nearly 32%, pushing its market cap to over $86.73 billion and overtaking $BNB to become the fourth-largest cryptocurrency by market cap. The latter’s market cap currently stands at a little over $84.29 billion.
The bullish sentiment around Solana is fueled by potential spot ETF approvals, drawing interest from institutional investors.
Analysts and community members on social media have expressed optimism about $SOL’s price trajectory, with predictions of it reaching new highs.
This surge is also attributed to memecoin mania and to the network’s robust liquid staking ecosystem.
Data from Dune Analytics shows that the total amount of $SOL deposited in liquid staking derivatives more than doubled in 2024.
Staked LSTs rose from 163,827 to 807,712, a 393% increase between 1 June and 26 July. This rise in staking activity coincides with increased on-chain activity and a 21% rise in daily active users.
SEC removes SOL from securities list
The SEC previously accused cryptocurrency exchange Binance of multiple violations of federal securities laws, including classifying several digital assets traded on Binance, such as Solana, Cardano ($ADA), and Filecoin ($FIL), as securities.
In a significant development, the US Securities and Exchange Commission (SEC) has now removed Solana, Cardano, and Filecoin from its list of classified securities in its lawsuit against Binance.
This change has sparked optimism within the Solana community, despite recent price sluggishness.
The SEC’s revised stance could have far-reaching implications for the global crypto market, potentially leading to more regulatory clarity and increased investor confidence.
The recent amendment to the SEC’s stance has removed the immediate need for the court to decide on these classifications. This would potentially pave the way for more predictable regulation of cryptocurrencies.
