Solana's Real Economic Value Soared to a Record High of $11.08M, Outpacing Ethereum

Analysis reveals that Solana achieved parabolic growth in its real economic value and even outpaced Ethereum earlier this month.

Solana Surges Past Ethereum In Terms Of Economic Value

Solana is outpacing Ethereum in terms of economic value, according to a recent analysis by Blockworks. The network’s real economic value hit a record high of $11.08 million.

This metric considers the network’s transaction fees and minimum viable ecosystem for ease of dapp development.

Solana’s real economic value skyrocketed, outpacing Ethereum earlier this month. This indicates that Solana has become a more attractive network for developers to build upon than Ethereum.

Solana Fees Indicate Expanding Utility

Solana’s network utility and development are highlighted by its economic value. The network’s transaction fees and level of developer activity are key metrics for assessing network adoption from a development perspective.

Solana fees exploded this year, particularly in the first half of 2024. On March 18, network fees reached a daily high of $4.95 million, but later dropped to a low of $272,660 on September 7.

Solana network fees recovered rapidly, reaching a peak of $4.7 million in the last 24 hours. This confirms the renewed activity of dapps as bullish sentiment returned in recent weeks.

After dipping earlier in the month, developer activity also recovered significantly. For perspective, Solana had 270 commits in May 2024, the lowest monthly developer activity in the past 5 years.

Despite October not being over, the number of commits had already reached 479. This is the first time Solana registered over 400 commits in the past 6 months.

Solana’s native cryptocurrency SOL traded within a bullish flag pattern and recently retested the upper declining resistance line. It peaked at $179, thanks to a strong bullish performance this month, continuing its momentum from September.

The resistance retest triggered some sell pressure, pushing the price down to $173 at the last check. This translates to a 3.17% drop from the previous day’s high, indicating a potential bear takeover.

Considering the price was overbought at the recent local high, this outcome is further supported. Will SOL price experience a deep retracement? Given the resistance retest and historical performance, we might see a significant pullback.

However, the latest demand for SOL from the vibrant Solana ecosystem is不容忽视的. Another possibility is that the demand might limit SOL’s potential downside, assuming the on-chain demand for the cryptocurrency remains high.

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