In a Historic First, Solana Now Generates More Economic Value Than Ethereum

In a historic turn of events, Solana has overtaken Ethereum in several crucial performance indicators, marking a significant shift in the decentralized finance (DeFi) landscape. For the first time ever, Solana has surpassed Ethereum in daily fees and revenue generation, raking in $2.3 million in fees and $1.07 million in revenue over the last 24 hours.

The momentum doesn't stop there. Solana has dominated Ethereum in decentralized exchange (DEX) volume for three consecutive weeks, a feat never before achieved. If Solana maintains its lead for the remaining two days of July, it will secure its first-ever monthly DEX volume victory, having already traded $51 billion compared to Ethereum's $48 billion in the first 29 days of July. 

Solana's DEX volume share has also reached an all-time high of 42% across all chains, even outpacing Ethereum and all its Layer 2 solutions combined.

Jito, Solana's leading protocol by total value locked (TVL), has also claimed the top spot in all of crypto for fee generation. Jito generated an impressive $3.27 million in fees in the last 24 hours, surpassing Lido and solidifying its dominance. The protocol's recent announcement to introduce restaking on Solana has fueled demand for its governance token, JTO, which has surged 48% in the last two weeks and trades at $3.25 at press time.

This series of achievements has not been well-received by Ethereum proponents, who have resorted to spreading misinformation about Solana's success. They claim that most of Solana's volume is artificially inflated by MEV bots and volume bots.

MEV as % of DEX volumes Solana Vs Ethereum (Chart by Sonya Kim)

However, when we check the actual data, it turns out that it contradicts these allegations, revealing only minor differences in the percentage of MEV-related DEX volume between Ethereum and Solana. Ethereum's average MEV share of DEX volume from October 2022 to July 2024 stands at 11%, while Solana's average remains notably lower. Although Solana experienced a temporary spike to 15-20% in March 2024, it has since returned to normal levels, debunking claims of excessive MEV activity.

Solana now dominates Ethereum in key metrics like DEX volume, fees, revenue generation, and active addresses, showcasing unprecedented demand as all key adoption metrics continue to rise. Solana is rapidly dethroning Ethereum as the most used blockchain and hub of on-chain activities, solidifying its position as a major player in the decentralized finance arena.