Solana has been beating Ethereum in transaction fees, MEV, TEV, and daily transaction volume in recent months.
Solana reached a new two-year high in March 2024 and now seems poised for further growth.
Jito's Validation Mechanism on Solana incentivizes validators to optimize transaction execution orders and could contribute to the surge in MEV.
Lower transaction fees and high transaction volume could also position Solana as a cost-effective alternative to Ethereum.
Robinhood's European launch of Solana staking is also set to increase the accessibility and potential for SOL in the long run
When it comes to so-called "Ethereum killers", Solana has been one of the biggest contenders for the throne, considering its cheap fees, scalability and lightning-fast transactions.
According to chart and on-chain data, Solana has been outshining the second-largest cryptocurrency in terms of performance since 2023.
And this remarkable trajectory of this cryptocurrency just might be coming to light more and more these days, as we will soon see.
Let’s go over this “ethereum killer”, as well as the strides it has made against the former over the last few months.
March 2024 was one of the strongest for Solana in terms of price action, considering how it marked the highest price level for the first time in the last two years.
The bears have since caught up to Solana, but the cryptocurrency seems super poised to continue its climb to higher highs these past few weeks.
On 12 May, Solana beat Ethereum soundly in terms of transaction fees and Maximum Extractable Value (MEV) as highlighted by the analyst, Gumshoe:
Solana beats Ethereum
The analyst went further to mention that this is the first time both of these blockchains have seen something like this in Ethereum's 11-year history and in Solana's four-year history.
Gumshoe noted that while Ethereum still beat Solana in terms of transaction fees generated with $1.82 million against Solana’s $1.19 million, Solana’s MEV surge beat Ethereum’s by a wide margin.
Gunshoe notes that this uptick may have been due to Jito's validor incentive mechanism, which rewards them for optimizing transaction execution order.
Solana also generated more Total Economic Value (TEV) which is a mix between the transaction fees and MEV, compared to Ethereum on 14 May.
Solana also beats Ethereum in TEV
Solana was able to beat Ethereum due to a dip in its transaction fees to a monthly low, in which Solana processed a staggering 30 million transactions, compared to Ethereum's meagre 1 million transactions.
This massive difference in both platforms only showed that investors and users see Solana as the more cost-effective alternative.
Solana Cumulative DEX Volume
Moreover, in terms of DEX volumes, Solana beat Ethereum in terms of daily volumes, with a total daily volume of $1.31 billion compared to Ethereum’s $1.29 billion.
This shows a stark contrast between both in terms of transaction volume and asset price, considering how Solana’s transaction volume peaked in March, just as it hit its new $210 all-time high.
Solana’s price action
However, despite this slight downturn, Solana has a lot more ongoing for it.
For example, Robinhood recently announced that it was launching staking options for Solana in Europe, thereby expanding the usage and potential of $SOL.
In all, these small strides that Solana continues to make in contrast to Ethereum is set to redefine the landscape, at least for the former.
Will Solana someday become strong enough to challenge Ethereum properly? Only time will tell.
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