Crypto Analyzer

Solana Surpasses Ethereum By Revenue After Parabolic Fee Spike 

## Solana’s Revenue Surpasses Ethereum Amid Fee Spike

The recent surge in transaction fees on the Solana network has led to a significant milestone where Solana surpassed Ethereum in daily revenue for the first time. The total economic value of Solana, including transaction fees and Maximal Extractable Value (MEV), exceeded that of Ethereum on May 12, as reported by Blockworks Research. Solana generated nearly $2.25 million in revenue in a 24-hour period, outpacing Ethereum’s $1.98 million by almost 13%.

This achievement was met with enthusiasm within the Solana community, with many supporters interpreting it as a precursor to Solana overtaking Ethereum in the future. Joe McCann, the founder of Asymmetric, highlighted this milestone on Twitter, emphasizing Solana’s potential despite being valued at 1/5th of Ethereum. However, there were contrasting views, with some pointing out the absence of Ethereum’s Layer 2 ecosystem in the comparison.

### Solana’s Fee Spike and Network Congestion

While celebrating this revenue milestone, it’s essential to acknowledge the escalating fees on the Solana network due to recent network congestion. Despite its high throughput capability of processing between 2,000 and 3,000 transactions per second, data from Dune Analytics revealed that over 60% of Solana transactions failed in the past month. Additionally, successful transactions decreased by over 50% since November.

To address this congestion issue, Solana users have had to cope with rising transaction fees to ensure their transactions are processed. Although the average Solana transaction fees have slightly decreased from their peak, users are still paying notably higher fees compared to leading Ethereum Layer 2 solutions after the Dencun upgrade.

### Ethereum’s Enduring Dominance

Despite Solana’s revenue achievement, Ethereum retains its leadership in the web3 space across various metrics. Ethereum continues to outperform Solana in decentralized exchange volume, with a daily lead of 33% and a weekly advantage of 26%, as reported by DeFi Llama. According to analysis from Messari, Ethereum maintains a 300% lead in real volume compared to Solana, indicating a substantial gap in on-chain activity value.

Ethereum’s DeFi total value locked (TVL) stands at $53.6 billion, significantly surpassing Solana’s $4.5 billion. Moreover, Ethereum’s market cap of $354.8 billion far exceeds Solana’s $111.3 billion market cap.

While Solana’s revenue milestone signifies its growing prominence in the crypto space, Ethereum’s entrenched position and widespread adoption across DeFi and other sectors underline its continued dominance in the blockchain ecosystem.