Solana’s Surge: On Track to Overtake Ethereum in Transaction Fees Within Days

Solana's Surge: On Track to Overtake Ethereum in Transaction Fees Within Days
Table of Contents


  • Impending Milestone: Solana is on the verge of potentially surpassing Ethereum in transaction fees, a significant achievement for its reputation as an “Ethereum-killer.”
  • Scalability and Costs: Solana’s approach to scalability aims to provide low transaction costs within its own ecosystem, contrasting with Ethereum’s layer-2 solutions. However, recent network disruptions have raised concerns about Solana’s reliability.
  • Market Position: Despite a surge in transaction fees, Solana’s total value locked (TVL) is only 7.4% of Ethereum’s, and its ability to consistently handle high transaction volumes without interruptions remains uncertain.

The Solana network is poised to potentially surpass Ethereum in terms of transaction fees, marking a pivotal moment for its reputation as the so-called “Ethereum-killer.” This week could see Solana eclipse Ethereum’s transaction fees, as indicated by Dan Smith, a senior research analyst at Blockworks. 

The term “Captured MEV” or Maximal Extractable Value, which is predominantly realized through arbitrage trading on blockchain protocols, is a metric that quantifies the utmost value extractable by a user or a coalition of users from a blockchain.

As of May 7, the total value locked in Solana was recorded at $2.8 million, approaching Ethereum’s $3.1 million. However, Solana’s daily transaction fees still fall short of Ethereum’s, with the latter accruing over $2.75 million in fees in the past 24 hours compared to Solana’s $1.49 million, according to the latest figures from DefiLlama.

When examining the total value locked (TVL), Solana’s $3.94 billion TVL constitutes a mere 7.4% of Ethereum’s staggering $53 billion TVL. Launched in March 2020, Solana boasted a throughput of 50,000 transactions per second (TPS), aiming to address Ethereum’s scalability issues and inefficiencies.

Solana’s Approach to Scalability and Low Transaction Costs

Solana's Surge: On Track to Overtake Ethereum in Transaction Fees Within Days

Solana adopts a singular, integrated method for scaling, aiming to achieve both scalability and low transaction costs within its own blockchain ecosystem. This contrasts with Ethereum’s approach, which utilizes layer-2 (L2) scaling solutions for modular scalability. Despite its intentions, Solana’s strategy has been met with skepticism following a series of network disruptions.

In early April, a surge in demand for memecoins led to approximately 75% of Solana transactions failing, as the network struggled to cope with the overwhelming demand. Additionally, on February 6, there was a halt of block production on the Solana network that lasted approximately five hours. 

The network was eventually restored after engineers and validators intervened to restart it, as noted on Solana’s official status page. This event has heightened worries regarding the network’s robustness and its capacity to handle large volumes of transactions consistently without halts.

As the crypto community watches closely, the question remains: will Solana’s recent surge in transaction fees herald a new era of dominance over Ethereum, or will it be another fleeting moment in the volatile world of cryptocurrency? Only time will tell if Solana can maintain its momentum and solidify its position as a formidable contender in the blockchain space.


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