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Report Reveals: Solana Surpasses Ethereum in Key Performance Metric for the First Time
- Syncracy Capital’s November 12 report highlights Solana’s rapid growth across key blockchain metrics, including its Real Economic Value (REV), which hit 111% of Ethereum’s in October 2024, up from just 1% a year ago, showing a major increase in network activity.
- Memecoin speculation, with tokens like Goatseus Maximus, is testing Solana’s reliability, reminiscent of early DeFi experiments on Ethereum, as Syncracy Capital views these as crucial for testing blockchain resilience.
- Solana’s Total Application Revenue (TAR) has reached 109% of Ethereum’s, indicating growing user and developer engagement.
Solana (SOL) is rapidly catching up to Ethereum (ETH) across core blockchain metrics, according to Syncracy Capital’s latest report.
Released on November 12, the report highlights significant growth in Solana’s real economic value (REV), which measures transaction fees and validator rewards.
In October 2024, Solana’s REV reached 111% of Ethereum’s, a remarkable jump from 1% in the same month last year. This shift shows a major increase in Solana’s network activity.
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Memecoin Speculation… Again
Syncracy Capital notes that memecoin speculation tests Solana’s reliability, similar to DeFi’s early days on Ethereum, with tokens like Goatseus Maximus (GOAT) hitting a US$400M (AU$616M) market cap within days. While some argue that memecoin speculation could be unsustainable, Syncracy Capital views it as a useful test of Solana’s resilience:
This phenomenon of onchain speculation is exactly what happened during the birth of DeFi on Ethereum in 2020 as well. In either case what’s important is that experiments are conducted and infrastructure gets tested. After all, if the industry’s north star is to shift the global financial system onto blockchains, these networks need to be battle-tested.
Syncracy Solana’s infrastructure also attracts decentralised infrastructure protocols (DePIN), which incentivise real-world infrastructure through blockchain technology. The blockchain now supports nine DePIN projects, including Helium and Render, bringing the network closer to Ethereum’s lead, where around 18 DePIN projects operate.
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The protocol also talked about Total Application Revenue (TAR), a metric that captures the total fees users pay for services on blockchain applications. It measures demand and economic activity within the blockchain ecosystem, where fees directly benefit token holders and developers instead of validators.
TAR on Solana, representing fees from decentralised applications, also reached 109% of Ethereum’s, up from 1% in October 2023. The rise reflects high engagement in Solana’s ecosystem, especially through dApps, showing traction among users and developers alike.
Talking about TAR, Syncracy said this about the Solana blockchain:
As Solana’s economy continues expanding both these metrics should increase over time.
Syncracy 
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
