jakiro
Written by: Joyce
Recently, with Goat, Pnut, Act and other Memes launched Binance one after another, the Solana ecosystem ushered in a new wave.According to Blockworks Research statistics,After October 19, 2024, Solana’s on-chain daily fees have exceeded Ethereum for several days.On October 24, the revenue even exceeded 10 million US dollars. The popularity of the Meme track has allowed all kinds of funds to continue to enter the Solana ecosystem, making it the hottest ecosystem in the circle at present.
It has to be said that Solana is indeed the most popular chain in this bull market. In the DePin craze, more than half of the celebrity projects came from the Solana ecosystem, and afterwards, there are waves of Meme crazes, which is very lively.
So, where do the high returns of the Solana ecosystem we are seeing mainly come from?How long can such a hot state last?
Solana on-chain fee situation at a glance
Similar to Ethereum, Solana’s on-chain revenue also includes basic transaction fees, MEV tips, etc.After Ethereum’s proposal for EIP1599, it will destroy all the base fees, and the MEV tip will be directly rewarded to the verification node. Solana also has a similar destruction mechanism, which will destroy the basic fees at a fixed rate (50% is set in the initial stage), and the rest will beAssign to validators.
Therefore, when comparing Ethereum and Solana on-chain revenue, all destroyed underlying transaction fees are included.
Specifically, Solana’s on-chain revenue includes base fees, limited transaction fees, tips (Jito) and voting fees, as shown in the figure below.
Judging from the daily fee trends on Solana chain shown in this picture,Compared with the other two, the basic transaction fees and voting fees have not changed much, but priority transaction fees and tips have seen rapid growth since March this year.
So, what are the two fees?The priority transaction fee is easy to understand, that is, the fees paid by users to speed up transactions are generally added directly during transactions.Tips (Jito) are an additional fee paid by users to the verifier, which is generally used for MEV-related transactions and targeted payment.
The rapid growth of both means that the activity of Solana network is increased and the network congestion caused by the increase in DeFi activity. Users are more willing to increase transaction speed by increasing priority transaction fees. At the same time, verifiers capture MEVs by optimizing transaction sequenceOpportunities also increase.
So, what are the DeFi transactions on the Solana chain? Are they completely Meme-driven?
It is not difficult to see from the data above that the transactions on the Solana chain mainly include Meme (Pumpfun), Meme (others), project tokens, LST tokens, stablecoins and SOL transactions, among which project tokens are not only listed above, but alsoIncluding DePin, SocialFi, etc.
In the past two months, the proportion of trading volume in all Memes has increased from 48% to 74%. Of course, the sharp decline in the proportion of other trading volumes does not mean a decline in trading volume.As the market rises, the trading volume of Token, LST, stablecoins and SOL on the Solana chain has increased significantly.However, Meme’s growth rate is too exaggerated, with a growth of 667% in the past two months, so the proportion of other transactions has dropped significantly compared to that.
This also confirms the above data.Because of the rapid growth of Meme transaction volume and driven by the belief that “time is money” in Meme transactions, users are naturally more willing to pay priority transaction fees.The more active the on-chain transactions, the more opportunities there will be for MEVs.
Solana Active Dapp
1) DEX
Currently, Meme transactions are mainly used on Solana’s chain, so naturally a number of DEXs are the most active Dapps.Currently, Solana Ecology is a lotDEXAmong them, Raydium is the most popular one. The data below shows that thanks to the outbreak of Meme, Raydium, which is currently deeply bound to Meme, has accounted for 63.5% of the entire Solana ecological transaction volume.Orca, which initially had an absolute advantage in Solana’s ecosystem, has been squeezed with the explosion of Meme’s trading volume, and has dropped from more than 60% to about 15% of the current share.
As a Meme launch platform, PumpFun has its own Meme trading function, and the transaction volume accounts for nearly 5% of this wave of Meme burst.And there is a gradual increase.
Solana Eco DEX Market Share, Source: Dune.com
2) Aggregation DEX and trading robots
In addition to direct transactions of DEX, the aggregation of DEXs and trading robots in the Solana ecosystem are also very active.The figure below shows the Solana Eco DEX market share divided by transaction sources. The latest data shows that Jupiter transaction volume accounts for 33%, while other protocols (including trading robots) account for 19%.
Solana DEX market share by transaction source, source: Dune.com
Jupiter is the largest aggregation transaction in the Solana ecosystem Dex,Currently, TVL has reached a new high of $1.57 billion, and Jupiter has made a lot of moves recently:
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First October 2The proposal for “Unclaimed 230 million JUPs for Extension and Funding of ASR” was approved, and the Active Equity Pledge Reward (ASR) will continue for another year;
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Then on October 8Launching a mobile application that supports various payment methods such as Apple Pay and credit cards is considered a new legal B channel;
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Released on October 17Solana MemeCoin terminal “Ape Pro” focuses on achieving MEV protection and improving sandwich attacks in transactions.
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Under a series of actions, the price of Token JUP is also very strong.
In addition to the aggregation trading platform,Trading robots in the Solana ecosystem are also very active, with more than 10% of transactions contributed by trading robots, among which the top four revenues are Photon, Trojan, BONKbot and Banana Gun.Photon’s revenue reached $29.85 million in the past thirty days, becoming the second only to Solana’s main chain revenue in the Solana ecosystem.In addition to the Solana main chain and the Pump protocol, the other three seats in the top five Solana ecological income protocols are all trading robots, which shows the money-making ability.
Solana Eco-Protocol Revenue Ranking, Source: DefiLlama
3) Other Dapps
Although DEX, aggregation DEX and trading robots around Meme are very popular throughout the Meme season, as the Solana chain is hot,SOL prices have also risen all the time, thus driving pledge, re-pled, borrowing, leverage and other agreements in the ecosystem. The following are several popular Dapps at present.
Jito
Jito is currently the highest DApp in Solana’s ecosystem, with TVL exceeding US$3 billion, accounting for more than one-third of Solana’s entire ecosystem TVL.Jito supports users to deposit Solana or Solana’s LST Token for re-pled.Compared with other staking agreements, Jito’s biggest feature is its MEV suite, which extracts MEV revenue from transactions in the Solana ecosystem and distributes this part of the revenue to the stakeholders, thereby increasing the stakeholders’ income.
Jito’s re-staking deposits have reached a hard top of $25 million, saying that the second phase will raise the cap to meet the pledge needs of more users.
Kamino
Kamino is the top stablecoin and LST asset income platform in the Solana ecosystem, and it integrates functions such as borrowing, liquidity provision and leverage. Currently, the TVL of the entire agreement has reached US$2 billion.
Kamino supports one-click automatic compound interest centralized liquidity strategy, which facilitates users to maximize returns by controlling borrowed funds.In addition, Lend V2 is expected to be launched in the fourth quarter of this year, which will allow the creation of different borrowing markets without permission to meet the broader user needs, as well as the introduction of automated single asset borrowing vaults to aggregate liquidity across markets in order to become Solana on-chain financethe foundation layer.
Marinade
Marinade is also the liquid staking agreement of Solana Eco. Currently, TVL is 1.79 billion, ranking fifth after Raydium.However, as both liquid staking agreements, the Marinade agreement has far less profit than Jito. Recently, Marinade has been promoting Solana staking services for institutional investors. TVL has risen by nearly 50% in the past month and a half.
summary
The Meme craze has indeed driven the enthusiasm of the entire Solana ecosystem, and the most direct reflection is Solana’s on-chain revenue and user activity.
However, the current Meme is just a product of a specific period under the bull market.Once it enters a bear market and if the MeMe market no longer continues, how the Solana ecosystem maintains the leading edge of the public chain is something to consider.Just like the NFT market that once became popular, it was a mess after the feast. Can Solana take advantage of the popularity of MeMe to create a healthier ecological income structure?
