- Solana could surpass Ethereum in transaction fees within a week, challenging its “Ethereum-killer” status.
- Solana’s total economic value from transaction fees was close to Ethereum’s on May 7, according to a research analyst.
- Despite the potential fee flip, Solana’s daily transaction fees and total value locked (TVL) are still significantly lower than Ethereum’s.
A recent report suggests that Solana’s transaction fees could surpass Ethereum‘s within a week, challenging Solana’s status as an “Ethereum-killer.” This potential flip could cement Solana’s position as a leading smart contract platform.
Solana’s Growing Transaction Fees
According to Dan Smith, a senior research analyst at Blockworks, Solana will overtake Ethereum in transaction fees and captured MEV (Maximal Extractable Value) this month, possibly even this week. On May 7th, Solana’s total economic value of $28 million was nearing Ethereum’s $31 million. While Solana’s daily transaction fees are still below Ethereum’s, the gap is quickly closing.
Solana vs Ethereum in Other Metrics
In terms of total value locked (TVL), Solana’s $39.4 billion TVL remains a fraction of Ethereum’s over $53 billion. Additionally, Solana’s network has suffered reliability issues, with outages occurring in April and February. This has raised doubts about Solana’s stability.
The Significance
If Solana flips Ethereum in fees, it would be a milestone for Solana’s goal of becoming a scalable alternative to Ethereum. While Solana still trails Ethereum in TVL and network uptime, lower fees could attract more developers and users to the network. However, it remains to be seen whether Solana can sustain this growth long-term.
Conclusion
In summary, Solana reaching lower fees than Ethereum would signal its rapid growth as a competitor to Ethereum.
