Solana rises to $211 amid growing network activity

Solana’s (CRYPTO:SOL) network has experienced notable growth, surpassing Ethereum (CRYPTO:ETH) in certain key metrics.

Despite this, the market value of its native token, SOL, remains at about 25% of Ethereum’s $391 billion, with Solana's market capitalisation hovering around $100 billion.

Industry observers suggest this could shift if current trends continue.

Syncracy Capital, a crypto hedge fund, reported that Solana-based decentralised applications (dApps) have recently surpassed Ethereum in revenue generation.

This is highlighted by metrics such as real economic value (REV) and total application revenue (TAR), which are used to gauge blockchain performance and value creation.

REV reflects the fees paid to validators, showcasing the financial health of a blockchain, while TAR indicates user engagement and demand through fees paid to protocols.

"As Solana's economy continues expanding, both these metrics should increase over time," stated Ryan Watkins, co-founder of Syncracy Capital.

Solana’s expansion is driven by its appeal to developers and users, supported by low transaction costs and rapid transaction processing.

This has positioned Solana as a popular hub for various activities, including decentralised finance (DeFi) and meme coin trading.

The platform’s meme coin launchpad, Pump.fun, reported $100 million in revenue within seven months, making it the fastest-growing protocol in the crypto ecosystem by revenue growth.

The SOL token has surged 277% from its 12-month low to reach $211.84, reflecting increased interest in the network despite its history of downtime and stability challenges.

While Ethereum maintains a strong position with institutional backing and developer activity, Solana’s technical advantages and lower costs offer a competitive alternative.

At the time of reporting, the Solana price was $205.52.