Solana Surges Past Ethereum in Transaction Fees, Igniting Bullish Sentiment

Solana Surges Past Ethereum in Transaction Fees, Igniting Bullish Sentiment

Solana (SOL) has made significant strides in recent weeks, outshining its more established competitor, Ethereum, in several key metrics. The blockchain’s performance has ignited bullish sentiment among investors, propelling SOL’s price to new heights.

Solana Outperforms Ethereum in Transaction Fees and TEV

In a historic first, Solana surpassed Ethereum in total weekly transaction fees during the week of July 22nd. The network processed approximately $25 million in fees compared to Ethereum’s $21 million. Moreover, Solana recorded its highest daily transaction fees in three months, reaching around $5.5 million.

The majority of Solana’s transaction volume stemmed from spot DEX trading, with a substantial portion contributed by Maximum Extractable Value (MEV) tips.

Solana’s dominance extended beyond transaction fees. On May 12th, the network briefly overtook Ethereum in total economic value (TEV), a metric that combines transaction fees and MEV.

SOL Price Soars, Overtaking BNB

Riding on this wave of positive performance, SOL’s price has experienced a steady uptrend. The cryptocurrency breached the $185 mark and continues to climb, with a market capitalization exceeding $86.73 billion. Notably, SOL has surpassed Binance Coin (BNB) to become the fourth-largest cryptocurrency by market cap.

The anticipation of potential SOL spot ETF approvals has attracted significant institutional interest, further bolstering the coin’s bullish outlook.

Solana Memecoins Crash Amidst Price Surge

While Solana’s overall performance has been impressive, the same cannot be said for its celebrity memecoins. Despite the initial frenzy surrounding these tokens, most have experienced a dramatic decline in value, causing substantial losses for investors.

PYUSD Gains Traction on Solana

PayPal’s PYUSD stablecoin has seen rapid growth on the Solana network since its launch in May. The token’s supply is closing in on its Ethereum-based counterpart, highlighting Solana’s efficiency and appeal for stablecoin adoption.

Liquid Staking Drives Solana’s DeFi Growth

Beyond the memecoin hype, Solana’s liquid staking ecosystem is emerging as a key driver of its DeFi growth. Protocols like Jito and Marinade have witnessed significant TVL increases, attracting new users to the network.

Bullish Outlook for SOL

Technical analysis suggests a strong bullish momentum for SOL, with the potential to retest its yearly high of $210. However, overcoming the immediate resistance level of $200 will be crucial for sustaining the uptrend.

 

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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