In a significant development, Solana has surpassed Ethereum in weekly total fees for the first time this year. According to Blockworks Research, Solana generated over $25 million in fees last week, edging out Ethereum’s $21 million.Â
This milestone matches with the launch of blockchain links (blinks) by the Solana Foundation, as reported by CNF. Throughout 2024, Solana, often dubbed the “Ethereum-killer,” has gained momentum. Â
This rise is driven by the popularity of Solana-based meme coins and celebrity-backed tokens like Moonshot and Pump.fun. The meme coin sector alone now boasts a market cap exceeding $50 billion.Â
Blockworks Research data reveals that the total value locked (TVL) on the Solana network has climbed to over $5.5 billion, nearly tripling since the start of the year. On July 28, Solana recorded $5.5 million in daily fees, the highest in three months. Â
Dan Smith, Blockworks’ data analytics manager, noted that these fees encompass various revenue streams, including validator rewards, tips, and maximum extractable value (MEV). Smith highlighted that 58% of the revenue came from MEV tips and 37% from priority transaction fees. “Solana validators and stakers are thriving this cycle,” Smith added.Â
Uncertainty Surrounding a Solana Ethereum ETFÂ
Solana’s native cryptocurrency, SOL, has seen a strong rally in 2024, recently reaching a peak of $185. However, the broader market correction has pushed SOL down by 5.5%, currently trading at $180 with a market cap of $83.9 billion. Market analysts are optimistic, predicting a potential 900% rally for SOL.Â
Amid this optimism, discussions about a potential Solana ETF have emerged, following the recent launch of an Ethereum ETF. However, BlackRock’s CIO for ETFs, Samara Cohen, recently stated that the firm is not pursuing additional crypto ETFs, casting doubt on the prospects of a Solana ETF. Cohen cited technical challenges and a lack of market demand as key reasons for the decision.Â
Despite this, asset manager VanEck has expressed interest in a SOL ETF, citing strong client demand. The future of a Solana ETF remains uncertain as the market awaits further developments.Â
