Solana Gains Market Share Against Ethereum Due to Meme Coins

Solana has continued its strong performance in December, largely due to the growth of meme coins on its platform. According to recent data, Solana’s protocols in the decentralized exchange industry were the most active in December, with a volume of over $97 billion. This represents a significant increase from the $22.6 billion it handled in the same period last year.

Outperforming Ethereum

Notably, Solana has outperformed Ethereum for the third consecutive month. Ethereum’s protocols had a volume of over $74 billion, while Base and Arbitrum handled $42 billion and $37 billion, respectively. Solana’s strong performance in December follows its impressive showing in November, where its DEX networks had a volume of $129 billion, surpassing Ethereum’s $70.6 billion.

Solana’s success can be attributed to its support for meme coins, which have gained significant traction this year. The platform has attracted thousands of meme coins, with the creation of Pump, the largest token generator, being a major factor. The total market capitalization of Solana’s meme coins now stands at over $14.1 billion, led by popular tokens such as Bonk, Dogwifhat, Popcat, and Peanut the Squirrel.

Record Revenue and Fees

The growth of Solana’s meme coin ecosystem has been highly profitable for the platform and its native applications. In November, Solana’s native dApps generated a record $365 million in revenue, while the blockchain itself generated a record $725 million in fees in 2024, making it the third-most profitable chain after Ethereum and Tron.

Developers and users are drawn to Solana due to its substantially lower fees and higher throughput compared to other blockchain platforms. This has contributed to its increasing popularity and adoption in the decentralized finance (DeFi) space.

Base: A Breakout Star in 2024

Base, the layer-2 network launched by Coinbase, has also been a notable success story in 2024. Its total fees rose to over $82 million, making it the biggest layer-2 network in the blockchain industry. Base’s DEX networks handled over $181 billion in assets, while its total value locked soared to $2 billion.

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Key takeaways from Solana’s success include:

  • Lower fees and higher throughput are key factors in Solana’s growing popularity.
  • The meme coin industry has played a significant role in Solana’s success, with thousands of meme coins launched on the platform.
  • Record revenue and fees have been generated by Solana’s native dApps and blockchain, making it a profitable platform for developers and users.
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