Solana Value Spikes 5.46% to $149: What Happened Behind the Scene

Solana (SOL) blockchain has, for the first time, outpaced the Ethereum network in terms of profitability, causing SOL’s value to surge. On-chain analyst Dan Smith brought attention to this significant event in a recent post on X. He noted that Solana’s economic value has exceeded $2.2 million. In comparison, Ethereum’s economic value sits at around $1.98 million.

For the first time ever on May 12, Solana generated more Total Economic Value than Ethereum in a single day pic.twitter.com/nrCe7pMNjb

— Dan Smith (@smyyguy) May 14, 2024

The chart accompanying the update shows the economic value generated by both Solana and Ethereum from February 14 to May 12, 2024. This value is calculated based on transaction fees and miner extractable value (MEV).

Ethereum’s economic value reached a high of $40 million in late February but experienced a decline, eventually stabilizing between $10 million and $15 million in April. By May 12, it had dipped to just under $2 million.

In contrast, Solana’s economic value started significantly lower than Ethereum — its values were around $1 million. However, it registered a steady increase through March and surpassed Ethereum by the end of the observed period, closing at approximately $2.25 million on May 12.

The crypto industry has reacted to these developments with various insights. Toghrul Maharramov from Scroll ZKP pointed out that Ethereum’s MEV remained relatively stable. However, transaction fees dropped following the EIP-4844 implementation, which impacted Ethereum’s economic value.

While Solana has overtaken Ethereum’s mainchain in profitability, analysts argue that it does not take into account Ethereum’s role as fuel across its various Layer 2 networks.

SOL 24-hour chart | CoinMarketCap

Remarkably, the news of this historic milestone for Solana impacted SOL’s market value. Solana had been languishing with bearish performance over the last 24 hours. However, it registered a swift and pronounced uptick in the last few hours, putting its intraday peak at $149.15. The trajectory reflects a 5.46% upsurge, considering SOL traded at a low of $141.42 earlier.

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