In recent days, the Solana network has captured the attention of the crypto ecosystem with record numbers and a surge in economic activity never before seen on the blockchain. While its traditional competitors like Ethereum are struggling to maintain their position, Solana is increasingly asserting itself as a key player in decentralized finance (DeFi).
Record economic activity on Solana
On October 23, 2024, Solana reached a new high with generating $8.7 million in economic value from its network activity, according to data from Blockworks Research. This increase comes just after recording just under $8 million the day before. “Solana continues to achieve major milestones in network revenue,” said declared Dan Smith, Head of Data Analytics at Blockworks. This figure includes all sources of revenue, from base fees to tips to priority fees.
At the same time, the total value locked (TVL) on Solana has exploded, going from 250 million dollars at the start of 2023 to more than 6.8 billion as of October 24, 2024. This dynamic places Solana in a good position against Ethereum, notably thanks to a significant increase in revenue in July, where Solana generated $25 million in weekly revenue, which surpasses Ethereum's $21 million.
Solana’s Growth Drivers and Outlook
Solana's current success is not based solely on growing economic activity. Thus, the rise of memecoin trading platforms such as Pump.fun and Moonshot, primarily based on Solana, played a decisive role in this increase in activity. These platforms have attracted many users and generated considerable transaction volumes, thus strengthening Solana's position in the crypto world. “Memecoin trading has been a significant factor in the network’s rising revenue,” adds Blockworks Research.
Additionally, SOL's potential for integration into exchange-traded funds (ETFs) in the United States makes it an asset to watch closely, alongside heavyweights Bitcoin and Ether. This integration prospect could provide increased exposure to SOL for institutional investors, thereby consolidating Solana's position as a key player in the crypto ecosystem.
Solana appears poised to play a major role in the future of decentralized finance. Its rapid rise, supported by record revenue growth and growing adoption of its services, could redefine the established order in the crypto world. As Solana prepares to take new steps, it remains to be seen how its competitors, notably Ethereum, will react to this rise. One thing is certain: Solana is now a key player to watch in the evolution of the crypto ecosystem.
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