30s Summary
Hedge fund Syncracy Capital’s report reveals Solana’s potential to compete with Ethereum in the blockchain market. Solana’s economic value amounted to 111% of Ethereum’s in October 2024, showing significant growth from 1% a year ago. Similarly, Solana’s total application revenue increased to 109% of Ethereum’s in the same period. The rise in value is attributed to memecoins’ popularity on the Solana platform. Despite challenges, Solana attracts decentralized infrastructure networks, with plans for a significant upgrade, called Firedancer, in 2025 to manage ever-growing activity.
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Solana’s making some serious climbs in popularity! It’s on track now to keep up with Ethereum, one of the big players in the blockchain world. This prediction comes from a study done by hedge fund Syncracy Capital. Their report shows Solana’s been on a steady growth ride for the last few months.
What’s even cooler? They found that in October 2024, Solana’s economic value was 111% of Ethereum’s. That’s a huge jump from the same period last year when it was just 1%. This figure includes things like transaction fees and tips paid to validators, which shows you a lot about the activity happening on the network.
Another way they looked at Solana’s rise to stardom was through total application revenue, meaning the fees paid for using programs and apps built on Solana or Ethereum. Solana’s total application revenue was 109% of Ethereum’s in October 2024, up from just 1% a year ago.
So, what’s spurring all this growth? Well, it seems like memecoins (digital currencies inspired by internet memes) are playing a big part. Several memecoins exploded in popularity on the Solana platform in October. A few standouts were Goatseus Maximus (GOAT), which hit a market cap of $400 million in a week. Other big gainers included SPX6900 (SPX), up 379%, Apu Apustaja (APU), up 170%, and FWOG, which saw a 134% increase last month.
This memecoin activity isn’t just a trend, but a valuable growth test for Solana. The craze for memecoins is helping the platform handle high volumes of transactions and fees, and attracting more value onto the network.
Despite a few bumps in the road – like occasional outages – Solana continues to draw in decentralized infrastructure (DePIN) networks. These are blockchain networks that help build and inspire real-world utilities. Solana is the home for 9 of these impressive projects, while Ethereum hosts 18.
For those following the development of Solana, they’ve outlined plans for a key upgrade in the future, slated for release in 2025. The update, named Firedancer, aims to handle the platform’s accelerating activity. In the end, whether you’re into serious crypto investing or just love a good internet meme, Solana seems to be a platform to keep your eyes on!