Solana Outperforms Ethereum in Daily Transaction Fees

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As a seasoned crypto investor with a knack for spotting promising projects, I’ve always kept a close eye on Solana (SOL) and Ethereum (ETH). The competition between these two powerhouses has been fascinating to watch, especially since Solana’s inception.

The daily rivalry between Solana (SOL) and Ethereum (ETH) is growing stronger. Since its launch, Solana has emerged as a significant competitor for Ethereum. Lately, on-chain data indicates that the Solana blockchain network has surpassed Ethereum in terms of daily transaction fee generation. In the last 24 hours, the so-called “Ethereum Killer” generated approximately $2.54 million in fees.

This figure shows growing user activity on the Proof-of-Stake (PoS) network.

Experts Predict SOL Rise Above ETH

During that same timeframe, Ethereum recorded approximately 2.07 million dollars in transaction fees. According to DefiLlama’s findings, Solana has managed to secure the fifth spot among fee-generating protocols within the crypto sphere. As per CoinMarketCap’s data, Solana (SOL) currently ranks fifth in terms of market capitalization with a value of around 82.78 billion dollars. Additionally, SOL stands second among Proof-of-Stake (PoS) coins.

The high transaction costs on Solana are primarily due to increased trading action taking place within Raydium, a prominent decentralized exchange (DEX) operating on this network. To provide some perspective, Raydium accumulated approximately $3.41 million in fees over a 24-hour period on the Solana blockchain.

Amid this outlook, crypto experts speculate that the price of SOL could likely surpass Ethereum’s.

Positive forecasts for Solana’s (SOL) price fall between approximately $148 and $387, with potential for even greater market growth. So far this year, SOL has surged by an impressive 449.88%, while Ethereum (ETH) has only risen by 40.6%. This suggests that Solana could potentially strengthen its market position further compared to ETH.

The superiority of SOL over Ethereum hinges primarily on its challenges in increasing costs, scalability, and network speed. Conversely, Standard Chartered Bank has recently suggested that Solana might be overpriced relative to Ethereum during Q4. Interestingly, the report also predicted a significant surge – up to 400% – for Solana if a pro-crypto candidate wins the US election.

Solana and Ethereum at the Top of Their Game

In many ways, Solana’s strategy to boost its transaction speed and lower fees without the need for a Layer-2 blockchain has set it apart. It’s important to note that this doesn’t mean Ethereum is struggling, particularly given its distinctive smart contract network. However, Ethereum’s scalability largely hinges on the implementation of L2 solutions.

According to some analysts, this move tends to shift value from the Ethereum main network towards side chains. However, Solana’s transaction fees were less than Ethereum over an extended period. Within 30 days, Ethereum amassed nearly $134.6 million in transaction fees, while Solana’s monthly fee of $61.3 million amounted to just about 45% of Ethereum’s total for that period. In essence, this reinforces Ethereum’s status as the dominant blockchain.

Notably, the growth of Solana can be attributed to the increasing popularity of memecoins on its network. For example, the memecoin launchpad Pump.Fun accounted for around 47.5% ($29.5 million) of the $61.7 million in fees generated by Solana over the past month.

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2024-10-28 18:39