Solana Surpasses Ethereum in Daily Economic Value, Marking a Momentous Achievement
NAIROBI (Coinchapter.com) – In a historic milestone, Solana has recently surpassed Ethereum in terms of daily economic value, sparking widespread conversations about the utility and adoption of blockchain technology. This significant shift signifies a pivotal moment in the ongoing competition among leading blockchain networks.
According to Blockworks Research, Solana generated $2,248,681 in total economic value (TEV) on May 12, surpassing Ethereum’s $1,977,416. TEV combines transaction fees and miner/extractor value, which are often used to analyze the utility and adoption of blockchain networks. These figures highlight Solana’s increasing influence in the blockchain space.
Total Economic Value. Source: Blockworks
Moreover, Chris Burniske, a former analyst at Ark Invest, has emphasized the importance of monitoring layer-1 blockchains that experience annual TEV expansion. Burniske’s remarks reflect the broader interest in the performance and potential of various blockchain networks as they evolve and compete for dominance.
L2 Solutions and the Ethereum Ecosystem Debate
Furthermore, proponents of Ethereum argue that excluding L2 solutions built on top of the main Ethereum blockchain is misleading. These solutions aim to enhance scalability and reduce fees by offloading activity from the L1 chain while remaining integral to the broader Ethereum ecosystem. As one commentator highlighted, “Since some ETH activity has moved to L2s, wouldn’t we include that? This is disingenuous if you don’t take L2s into account.”
While Burniske acknowledges that each L2 operates within its own environment, TEV comparisons are typically conducted on an L1-to-L1 basis. However, some argue that L2s are inseparable components of larger ecosystems like Ethereum, which has previously struggled with high fees.
Notably, Ethereum’s fees have occasionally dropped below Tron’s, highlighting the dynamic nature of this highly competitive landscape. As blockchain technology continues to evolve, debates surrounding utility, scalability, and the role of L2 solutions will likely persist, shaping the future trajectories of these influential networks.
Solana Price Analysis
Significantly, Solana’s price movements reflect its strong performance. As of May 15, Solana is trading at $144.02, showing a 1.42% increase. The Bollinger Bands indicate moderate volatility, with the price trading within a narrow range.
SOL/USD 1-day price chart. Source: TradingView
The Fibonacci retracement levels provide valuable insights. The 38.2% retracement level at $138.73 serves as a strong support level, as the price has tested it multiple times, indicating its significance. On the upside, the 23.6% retracement level at $159.62 acts as resistance.
Additionally, Solana’s price movements suggest consolidation within a range, hinting at the potential for a breakout. The moving averages align with the current price, indicating stability. If Solana maintains its upward momentum, it could challenge higher resistance levels, paving the way for further gains.