Solana can reverse Ethereum transaction fees in a week – report
The Solana network may be on its way to beating the Ethereum network in terms of transaction fees.
Writing in a May 7 X post, Dan Smith, senior research analyst at Blockworks, said Solana could topple Ethereum's transaction fees as soon as this week.
“Solana will replace Ethereum transaction fees + MEV this month, maybe this week.
Maximum Earned Value, or MEV, typically refers to the profit that can be captured in arbitrage transactions on protocols. MEV measures the maximum amount of value that can be extracted from the blockchain by a user or group of users.
Moreover, Solana's $2.8-million total economic value as of May 7 was close to Ethereum's $3.1-million total economic value, according to Smith X Post:
“'Gross economic value' (shill me better names) is returned to validators as total transaction fees + retained MEV. Yesterday Ethereum: $3,165,772, Solana: $2,803,313.
However, Solana's daily transaction fees are still far from Ethereum. Ethereum is worth more than $2.75 million in the past 24 hours, compared to Solana's $1.49 million, according to Defillama data.
Looking at Total Value Locked (TVL), Solana's $3.94 billion in TVL is still a small fraction, or around 7.4% of the Ethereum network's $53 billion TVL.
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Is Solana Really “Ethereum Deadly?”
Solana launched on the mainnet in March 2020 with claims of 50,000 transactions per second (TPS), promising to improve Ethereum's lack of elasticity and efficiency, dubbed the “Ethereum killer”.
With Ethereum's modular approach to Layer-2 (L2) scaling solutions, Solana's modular approach aims to create scalable, low-fee solutions like an independent blockchain network.
However, Solana's approach has faced widespread criticism following previous terminations. Demand for memecoins in early April resulted in an estimated 75% of Solana transactions being rejected as the network was unable to handle the peak demand.
On Feb. 6, block production on Solana was halted for about five hours before engineers and verifiers began restarting the network, according to Solana's status page.
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