Solana (SOL) is rapidly catching up to Ethereum (ETH) in key blockchain metrics, according to a new report from Syncracy Capital.

The report, published on November 12, highlights the significant growth in Solana’s real economic value (REV), which is measured by transaction fees and validator rewards.

Solana’s REV reached 111% of Ethereum’s REV in October 2024, a significant jump from 1% in the same month last year. This shift represents a significant increase in Solana’s network activity.

Syncracy Capital notes that memecoin speculation is testing Solana’s credibility, similar to the early days of DeFi on Ethereum, when tokens like Goatseus Maximus (GOAT) reached a market cap of US$400 million (AU$616 million) within days. While some argue that memecoin speculation may be unsustainable, Syncracy Capital sees it as a useful test of Solana’s resilience:

Solana’s infrastructure is also attracting decentralized infrastructure protocols (DePINs), which incentivize real-world infrastructure using blockchain technology. The blockchain now supports nine DePIN projects, including Helium and Render, bringing the network closer to Ethereum’s leadership, where about 18 DePIN projects operate.

The protocol also talked about Total Application Revenue (TAR), a metric that captures the total fees that users pay for services on blockchain applications. It measures demand and economic activity in the blockchain ecosystem, with fees directly benefiting token holders and developers, rather than validators.

TAR on Solana, which represents fees from decentralized applications, has also reached 109% of Ethereum, up from 1% in October 2023. The growth reflects high engagement in the Solana ecosystem, particularly through dApps, demonstrating popularity among both users and developers.

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