Ethereum
Solana overtakes Ethereum in revenue after parabolic fee hike
The Solana community is celebrating record revenues, but the milestone is a sign that users are paying high transaction fees.
The turf war between Solana and Ethereum supporters continues to escalate, with the Solana community celebrating for the first time as the network surpasses Ethereum in daily revenue.
On May 12, the total economic value of Solana – transaction fees combined with the maximum extractable value (MEV) – surpassed that of Ethereum for the first time, according to data from Blockworks Research.
The chart, which was widely shared on social media, shows Solana generating nearly $2.25 million in revenue over 24 hours, outpacing Ethereum’s $1.98 million by almost 13%.
This milestone was celebrated throughout the Solana community, with supporters heralding it as a sign that Solana will soon benefit from a reversal on Ethereum.
“For the first time ever, Solana recently eclipsed Ethereum in terms of daily economic value.” said Joe McCann, founder of Asymmetric, a cryptocurrency investment company. “Friendly reminder that SOL currently represents 1/5th of the value of ETH.”
“[Solana] is always 100 times cheaper for users,” tweeted Ansem, a popular trader and influencer. “Explain to me in detail why ETH is still worth 5x more in terms of market cap.”
But not everyone was convinced, with Ethereum’s dynamic layer 2 ecosystem notably absent from Blockworks’ data.
“It is crucial to remember that this comparison only includes the Ethereum mainchain, without considering the value of ETH as a payment method and transaction fuel for various layer 2 networks.” retorted Leon Waidmann, analyst at BTC-Echo. “This makes the comparison flawed… people underestimate how positive L2 adoption is for Ethereum’s currency premium.”
Solana Fees Skyrocket
Solana’s recently skyrocketed fees were also conveniently ignored during the network’s revenue milestone celebrations.
One of Solana’s key value propositions is its high throughput, with the network regularly hosting between 2,000 and 3,000 transactions per second (TPS) in recent days.
However, recent network congestion has caused a volume of transactions to fail to execute, with Dune Analytics data showing over 60% Solana transactions have failed over the past month. The number of successful Solana transactions also fell by more than 50% since the beginning of November.
To combat congestion, Solana users have been forced to pay increasingly higher fees to ensure their transactions are executed. Solana’s average transaction fees reached new all-time highs above $0.018 in March and posted an all-time high of $0.06 on March 18.
Average Solana transaction fees. Source: Dune Analytics.
Although Solana’s fees have since dropped to $0.0136, Solana users are still paying significantly higher amounts to transact compared to mainstream Ethereum Layer 2 after the Dencun upgrade in March.
According to data from GrowThePie, the average transaction fees on Arbitrum, Optimism and Linea currently stand at $0.005, $0.006 and $0.012 respectively.
Data from The block also shows that more than 75% of Solana’s transaction revenue was attributed to non-voting priority fees from February to May.
No-vote priority fees are additional fees that users pay to prioritize their transactions over others in a crowded network, excluding votes for network validators. These fees help ensure that their transactions are processed faster, even during heavy network traffic.
Ethereum’s continued dominance
Despite the buzz surrounding Solana’s revenue milestone, Ethereum continues to dominate web3 according to many key metrics.
Ethereum continues to beat Solana in terms of decentralized exchange volume, enjoying a 33% daily lead and a 26% weekly lead, according to DeFi Llama.
Furthermore, the analysis of Messari shows that Ethereum enjoys a 300% lead according to its “real volume” metric – which seeks to filter out wash transactions when measuring the value of on-chain activity. As of May 13, Solana’s actual volume was $6.77 billion, significantly behind Ethereum’s $24.8 billion.
Ethereum’s DeFi total value locked (TVL) is also $53.6 billion, significantly eclipsing Solana’s $4.5 billion. Ether also has a market capitalization of $354.8 billion, compared to SOL’s $111.3 billion.
Ethereum
QCP sees Ethereum as a safe bet amid Bitcoin stagnation
QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.
Read on to find out how you can benefit from it.
Bitcoin’s Struggle: The $70,000 Barrier
For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.
Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.
QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.
The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.
Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.
A glimmer of hope
QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.
QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.
Ethereum
Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million
An Ethereum ICO participant has emerged from nearly a decade of inactivity.
Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.
The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.
This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.
Recent Transactions and Movements
The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.
Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.
Why are whales reactivating?
It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.
In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.
At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Ethereum
Only Bitcoin and Ethereum are viable for ETFs in the near future
BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future
Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.
In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”
Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.
BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.
Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.
Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.
Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.
Ethereum
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