Crypto: Against Ethereum, Solana Stands Out With Record TVL Increase

The Solana network has captured the attention of the cryptoecosystem in recent days with record numbers and a surge in economic activity never before seen on the blockchain. While its traditional competitors such as Ethereum are struggling to maintain their position, Solana is increasingly establishing itself as a key player in decentralized finance (DeFi).

Record economic activity on Solana

On October 23, 2024, Solana hit a new high when it generated $8.7 million in economic value from its network activity, according to data from Blockworks Research. This increase comes on the heels of uploading just under $8 million the day before. “Solana continues to achieve significant network revenue milestones,” said Dan Smith, Head of Data Analytics at Blockworks. This figure includes all sources of income, from basic fees to tips to priority fees.

At the same time, Solana’s Total Value Locked (TVL) has exploded, rising from $250 million in early 2023 to over $6.8 billion as of October 24, 2024. This momentum positions Solana well against Ethereum, especially due to the significant increase in sales in July , when Solana generated $25 million in weekly revenue, surpassing Ethereum’s $21 million.

Solana’s Growth Drivers and Outlook

Solan’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 significant transaction volumes, strengthening Solana’s position in the crypto world. “Memecoin trading has been a significant factor in the network’s growing revenue,” adds Blockworks Research.

Additionally, SOL’s potential for integration into US exchange-traded funds (ETFs) makes it an asset to watch closely alongside heavyweights Bitcoin and Ether. This integration prospect could provide greater exposure to SOL for institutional investors, cementing Solana’s position as a key player in the crypto ecosystem.

Solana seems poised to play a major role in the future of decentralized finance. Its rapid rise, fueled by record revenue growth and growing adoption of its services, could redefine the established order in the crypto world. As Solana prepares for new moves, we will see how its competitors, especially Ethereum, react to this rise. One thing is certain: Solana is now a key player to watch in the evolution of the crypto ecosystem.

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.

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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.