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.