<\/p>\n
The Solana community is celebrating record-high revenue, but the milestone is a sign users are paying high transaction fees.<\/p>\n
The turf war between Solana and Ethereum supporters continues to heat up, with the Solana community celebrating the network overtaking Ethereum by daily revenue for the first time.<\/p>\n
On May 12,\u00a0Solana\u2019s\u00a0total economic value \u2014 transaction fees combined with Maximal Extractable Value (MEV<\/a>) \u2014 surpassed that of Ethereum for the first time, according to data from Blockworks Research.<\/p>\n The chart, which received widespread circulation on social media, shows Solana hosting nearly $2.25 million in 24-hour revenue \u2014 beating out\u00a0Ethereum\u2019s\u00a0$1.98 million\u00a0by nearly\u00a013%.<\/p>\n <\/p>\n The milestone\u00a0was celebrated\u00a0across the Solana community, with supporters heralding it as signaling Solana will soon enjoy a flippening over Ethereum.<\/p>\n \u201cFor the first time ever, Solana has recently eclipsed Ethereum in daily economic value,\u201d\u00a0said<\/a>\u00a0Joe McCann, the founder of Asymmetric, a cryptocurrency investment firm.\u00a0\u201cFriendly reminder that SOL is currently 1\/5th the value of ETH.\u201d<\/p>\n \u201c[Solana] is still 100x cheaper to transact on for users,\u201d\u00a0tweeted<\/a>\u00a0Ansem, a\u00a0popular\u00a0trader and influencer.\u00a0\u201cExplain to me\u00a0in detail\u00a0why ETH is still worth 5x more by market cap.\u201d<\/p>\n But not everyone was convinced, with\u00a0Ethereum\u2019s\u00a0bustling Layer 2 ecosystem notably absent from\u00a0Blockworks\u2019\u00a0data.<\/p>\n \u201cIt’s\u00a0crucial to remember this comparison only includes the Ethereum mainchain, not accounting for\u00a0ETH’s\u00a0value as a payment method and fuel for transactions for various Layer 2 networks,\u201d\u00a0retorted<\/a>\u00a0Leon Waidmann, an analyst at BTC-Echo.\u00a0\u201cThis makes the comparison flawed\u2026 people underestimate how positive the adoption of L2s is for the monetary premium of Ethereum.\u201d<\/p>\n Solana\u2019s\u00a0recently rocketing fees were also conveniently ignored among\u00a0celebrations of\u00a0the\u00a0network\u2019s\u00a0revenue milestone.<\/p>\n One of\u00a0Solana\u2019s\u00a0core value propositions is its high throughput, with the network consistently hosting between 2,000 and 3,000 transactions per second (TPS) in recent days.<\/p>\n However, recent network congestion has resulted in a volume of transactions failing to execute, with data from Dune Analytics indicating more than\u00a060%<\/a>\u00a0of Solana transactions have failed over the past month. The number of successful Solana transactions also dropped more than\u00a050%<\/a>\u00a0since the start of November.<\/p>\n To combat the congestion,\u00a0Solana users have\u00a0been forced\u00a0to pay increasingly high fees to ensure their transactions execute.\u00a0Average Solana transaction fees broke into new all-time highs above $0.018 in March and posted an all-time high of\u00a0$0.06<\/a>\u00a0on March 18.<\/p>\n Although Solana fees have since fallen to $0.0136, Solana users are still paying significantly higher sums to transact compared to leading Ethereum Layer 2s following the Dencun upgrade<\/a>\u00a0in March. <\/p>\n According to\u00a0data<\/a>\u00a0from GrowThePie, average transaction fees on Arbitrum, Optimism, and Linea currently sit at $0.005, $0.006, and $0.012\u00a0respectively.<\/p>\nSolana fees skyrocket<\/h2>\n