- Solana generated more fees despite lesser users compared to other Layer-2 solutions.
- The price of SOL remained stagnant, while social volume was high.
2024 has been Solana’s [SOL] year, as the crypto sector regained its footing and the bull run began. Due to the popularity of the Solana network, the activity on the protocol network grew materially.
Due to the surge in activity, Solana outperformed many Layer-2 solutions.
Solana outperforms L2s
Despite boasting a potentially larger user base, L2s generate a mere fraction of the fees compared to Solana.
According to recent data by analyst Michael Nadeau, Solana currently rakes in six times more in fees than the combined total of the top seven L2s.
This suggests that while L2s have a wider user net, the average user on Solana spends significantly more on fees. This phenomenon could be attributed to several factors.
Solana might be processing a higher volume of transactions per user, even with a smaller overall user base. Additionally, the fee structures themselves might differ, with Solana potentially charging more per transaction.
It’s also possible that Solana attracts a specific user type, such as memecoin enthusiasts, who interact more with the network than the average user.
Furthermore, it’s worth considering the user experience (UX) argument.
One possible reason for the growth of the network would be Solana’s superior UX, which might make interacting with the platform more engaging for users.
Source: X
Over the past month itself, the number of active addresses on the Solana network grew by 58.3%. the revenue generated by the network also surged by 22% according to AMBCrypto’s analysis of Token Terminal’s data.
Source: token terminal
Interest in SOL surged
At press time, SOL was trading at $151.71 and its price had surged by 0.2% in the last 24 hours. The volume at which it was trading at had grown by 13% during this period.
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In the social landscape, Solana was doing really well as well.
Notably, AMBCrypto’s analysis of Santiment’s data revealed that the social volume around the token had spiked consistently over the past month, signaling heightened popularity on the network.
Source: Santiment