Solana had overtaken Ethereum in terms of daily network fees. According to data from DefiLlama, Solana generated over $2.54 million in fees over the past 24 hours, surpassing Ethereum’s $2.07 million on October 28. This makes Solana the fifth largest blockchain by fee revenue in the crypto market.
Solana’s boost is mainly due to strong activity on its main decentralized exchange (DEX), Raydium. Raydium alone brought in $3.41 million in fees in a single day.
Solana is often considered an “Ethereum killer” due to its monolithic approach to scaling and its ability to maximize transaction throughput while reducing costs without the need for scaling solutions layer 2 (L2).
Ethereum, on the other hand, relies on L2 scaling solutions to handle increased network activity. However, some believe this setup could weaken its mainnet.
Although Solana has made strong gains in daily fees, it still earns less than Ethereum over longer time periods. Over the past 30 days, Ethereum has earned approximately $134.6 million in fees, almost double Solana’s $61.3 million.
Nearly half of Solana’s recent fees came from trading memecoins on Pump.fun, a platform on Solana that generated approximately $29.5 million in fees for the network over the past month.
Additionally, this growth has also put the Solana network under pressure at times. Earlier this year, a surge in memecoin trading caused 75% of Solana’s transactions to fail. On April 4, Solana even stopped processing transactions for five hours, showing that it still faces challenges in meeting user demand.
