The Solana network continues to generate higher revenue than Ethereum, even as the broader cryptocurrency market experiences a downturn and retail trading activity slows. According to data from DeFiLlama, Solana’s dominance is particularly evident among decentralized applications (dApps), where revenues have surpassed those of Ethereum-based apps by as much as tenfold.
Crypto researcher Aylo highlighted this trend in a February 10 post on X, emphasizing that even with the inclusion of Ethereum’s layer-2 scaling solutions (L2s) such as Arbitrum and Base, Solana’s revenue remains significantly higher. On February 9, Solana generated over $8.4 million in revenue, while Ethereum trailed behind with just $875,571.
Despite the market downturn and the trenches being rekt, Solana continues to generate significantly more revenue than Ethereum & Solana apps are doing nearly 10x more revenue.
— Aylo (@alpha_pls) February 10, 2025
You can plug in any L2 you want and add it on top and it doesn't make any difference right now.
This… pic.twitter.com/zX5LQ777Dc
Ethereum’s L2s hold substantial total value locked (TVL), with Arbitrum and Base boasting $14 billion and $11.5 billion, respectively, according to L2Beat. However, Solana’s TVL still lags, standing at $9.5 billion compared to Ethereum’s $56.8 billion, based on DeFiLlama data.
Memecoin Mania Fuels Solana’s Revenue Surge
The primary driver behind Solana’s revenue growth has been an explosion in memecoin trading. According to research from Messari, Solana’s cumulative app revenue surged by 213% in Q4 2024, largely fueled by speculative trading in the memecoin sector.
Notably, Pump.fun, a Solana-based memecoin launchpad, recorded an impressive $235 million in Q4 revenue—a staggering 242% increase from the previous quarter. This surge has solidified Solana’s position as the go-to network for high-volume speculative trading.
Aylo likened the memecoin craze to online gambling, noting that speculative trading will persist as a core use case for crypto. “People like to play unwinnable lotteries, and Solana has captured one of crypto’s biggest use cases,” he stated.
Also Read: VanEck Predicts Solana (SOL) to Hit $520 by 2025 Amid Rising SCP Demand and Expanding M2 Supply
Solana’s Valuation Outpaces Ethereum
Despite SOL’s rapid appreciation in 2024—nearly doubling Ethereum’s growth rate—the network remains undervalued compared to other L1 and L2 solutions, according to Aylo. With a strong revenue base and a dominant presence in the speculative trading sector, Solana continues to reinforce its position as a leading blockchain network amid changing market conditions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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