- Solana has achieved records in terms of real economic value.
- Memecoin activity pushed metrics through Ethereum.
- REV is the core of Solana’s security and decentralization.
Solana has seen significant growth this year, driven by the explosive growth of memecoins on the chain. As memecoin activity picks up again, Solana has hit all-time highs in key indices.
Memecoin trading volume is impacting the indicator by increasing Solana’s fees. In particular, the real economic value of the Solana network has reached an all-time high, even surpassing that of Ethereum.
Solana surpasses Ethereum in real economic value
Thanks to surging memecoin activity, Solana has surpassed Ethereum in key metrics. On Thursday, October 24, Solana achieved a record real economic value of $11.09 million. This figure is higher than Ethereum, which was ahead in terms of revenue.
REV (Real Economic Value) combines transaction fees and MEV (Maximum Extractable Value) tips. These fees are the main source of revenue for chains and validators and help secure the network. Since October 19, Solana’s REV has surpassed Ethereum’s REV.
The main driver of this growth is the growing demand for Jito tips and priority fees. As traffic increases thanks to memecoin trading on platforms like Pump.fun, traders are increasingly competing for preferred trades. Validators can choose to prioritize transactions for traders who pay additional fees.
Why REV is at the heart of Solana
Network revenue is at the core of Solana and has important implications for both decentralization and security. In particular, Solana’s validators have very high fixed operating costs due to the expensive equipment required to run the network.
Smaller validators in particular are extremely dependent on REV. Since validators earn income proportional to the amount of SOL staked, small validators are always at risk of going bankrupt when fees are lowered.
This dependence was highlighted in September when Memecoin traffic slowed, leading to lower revenues. This sparked major concerns for Solana, including the risk of worsening centralization.
On the flipside
- Memecoin is one of the most volatile investments in cryptocurrency. Solana’s dependence on this industry could pose a risk to the network.
- Solana has become a popular platform for celebrities to launch their own tokens. However, they have shown disappointing performance. For example, 30 celebrity meme coins launched in June have seen declines. Average 94% In just one month.
Why This Matters
Solana’s REV record is an important milestone as it plays a critical role in maintaining network security and decentralization.
Learn more about Solana’s growth:
Solana TVL hits 2-year high: What’s driving growth?
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