Solana flips Ethereum in daily fees, surpasses $2.5M in 24 hours

Decentralized trading activity has fueled Solana fees to surpass Ethereum’s, making it the fifth-largest fee-generating protocol in the crypto space.
Decentralized trading activity has fueled Solana fees to surpass Ethereum’s, making it the fifth-largest fee-generating protocol in the crypto space.

Solana has surpassed Ethereum in daily network fee generation, indicating growing user activity on the world’s third-largest blockchain.

Solana has generated over $2.54 million worth of fees during the past 24 hours, surpassing Ethereum’s $2.07 million on Oct. 28 — making Solana the fifth-largest fee-generating protocol in the crypto space, according to DefiLlama data.

Protocols by 24-hour fees. Source: DefiLlama

Solana’s soaring fees are correlated with growing trading activity on its leading decentralized exchange (DEX), Raydium, which generated over $3.41 million worth of fees on the Solana blockchain during the past 24 hours.

Solana protocols by 24-hour fees. Source: DefiLlama

Solana is often referred to as an “Ethereum killer” for its monolithic scaling approach, which aims to enhance transaction throughput and reduce fees without relying on layer 2 (L2) blockchains.

In contrast, Ethereum’s fragmented structure depends on L2 solutions to achieve scalability, which some critics argue disperses value away from the Ethereum mainnet to side chains.

Related: Ether price in 7-month decline amid ‘L1 wars,’ says analyst

Ethereum nears $135 million in 30-day fees, leading Solana

Despite Solana’s recent growth, its transaction fees still fall short of Ethereum’s over a longer time frame.

Looking at the past 30 days, Ethereum generated nearly $134.6 million in transaction fees, cementing its position as the leading blockchain and third-largest protocol by fees.

Fees, Ethereum Classic, Ethereum 2.0, Solana

Protocols by 30-day fees. Source: DefiLlama

In the same period, Solana generated $61.3 million in monthly fees, or about 45% of Ethereum’s 30-day total, DefiLlama data shows.

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“Degen” memecoin trading drives 47% of Solana’s monthly fees

Nearly half of Solana’s monthly revenue came from activities related to memecoins.

More than 47% of Solana’s monthly revenue was driven by transactions on the memecoin launchpad Pump.fun, which contributed approximately $29.5 million of Solana’s $61.7 million in fees over the past month.

Fees, Ethereum Classic, Ethereum 2.0, Solana

Pump.fun, monthly fees. Source: DefiLlama

Interest in Solana-based memecoins surged earlier this year. By March, new memecoins attracted more than $100 million in Solana (SOL) investments. Crypto researchers warned of an overheated memecoin market hitting “peak degeneracy” two months after the launch of Pump.fun.

However, 98.6% of memecoins on Pump.fun never make it to Raydium, underscoring the risks of memecoin trading.

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