Solana outperforms L2 solutions
2024 has marked a significant milestone for Solana as it rises to prominence in a recovering cryptocurrency market, marking the onset of a bullish trend. The surge in the Solana network's popularity has led to a marked increase in its protocol activity.
This ascension in activity has positioned Solana ahead of numerous Layer-2 networks.
Surpassing Layer-2 Competitors
In comparison to the potentially broader audience of Layer-2 networks, they generate only a small fraction of the fees Solana collects.
Recent analysis by Michael Nadeau has shown that Solana's fee revenue is sixfold that of the combined earnings of the top seven Layer-2 networks.
This indicates that despite Layer-2 networks potentially reaching a broader audience, Solana’s users are contributing significantly more in fees. Several reasons could be behind this trend.
It could be that Solana supports a greater transaction volume per user despite having a smaller user base. Additionally, it's plausible that Solana’s transaction fees are higher or the network may attract distinct types of users, such as those fond of memecoins, who are more actively engaged with the network.
Another consideration is the user experience (UX) Solana offers.
The network's exceptional UX may be a key factor in accelerating its growth by offering a more compelling interaction model for its users.
Indeed, over the last month, the number of active Solana addresses shot up by 58.3%, with network revenue experiencing a 22% increase.
At the current moment, SOL is being traded at $151.71, witnessing a 0.2% increase over the past 24 hours. Its trading volume has seen a 13% increment in the same timeframe.
On the social front, Solana’s presence has soared.
