Ethereum protocol's revenue has been surpassed by Solana by 10 times, and even the entire Layer2 is not enough to compete.

With the meme coin trading frenzy, Solana's application revenue has skyrocketed by 10 times, solidifying its position as a strong competitor to Ethereum. (Summary: Analyst: New projects are not getting attention on Ethereum L2, better results on Solana) (Background: Ethereum shorts positions surged 40% in a week, what are institutions positioning for? Whale with 10 years of holdings: Can't see the potential rise of ETH) Even as the market cools down, Solana's application revenue continues to far surpass Ethereum and its L2 second-layer scaling solutions, making it the biggest winner recently. According to researcher Aylo using DefiLlama data, Solana's network has generated income far exceeding Ethereum at the application level, even reaching more than 10 times. Even considering Ethereum's second layer (L2), such as Arbitrum and Base, Solana's advantage remains significant. While revenue is ahead, the total value of Solana's lock-up positions (TVL) is still far behind Ethereum. As of now, Solana's TVL is about $950 million, while Ethereum is close to $56.8 billion, showing a significant gap in funding scale between the two. The meme coin frenzy has boosted Solana's revenue. The main driver of Solana's revenue surge comes from the meme coin trading frenzy. According to data from research institution Messari, Solana's applications saw a 213% increase in total revenue in Q4 2024, mainly attributed to speculative activities in meme coins. The meme coin issuance platform Pump.fun generated $235 million in revenue in Q4, with a quarterly growth rate of 242%. Aylo pointed out: Just like online gaming never stops, this kind of speculative behavior won't disappear. Solana has already captured one of the most important use cases for cryptocurrencies. Aylo further stated that this revenue performance provides a solid foundation for the valuation of SOL tokens. Since early 2024, the price of SOL has risen almost twice as fast as ETH. Trend reversal in Ethereum ETF fund flows. According to data, Ethereum ETF outflows reached a new high at the end of January 2025, with daily outflows exceeding $170 million and a net outflow of $22.85 million on February 10. The price of Ethereum has dropped significantly from its high point of around $4,000 in November 2024, hovering around $3,000 at the end of January 2025, with a decline of over 25%, significantly affecting investor confidence. Further reading: Vitalik's long article: How to develop Ethereum L1 and L2? Expand Blob space first, and how to distribute L2 to the Mainnet... Related reports: Ethereum shorts positions surged 40% in a week, what are institutions positioning for? Whale with 10 years of holdings: Can't see the potential rise of ETH. Analyst: New projects are not getting attention on Ethereum L2, better results on Solana. ETH researcher: The current Ethereum issuance curve is a trap, should adopt the 'bullhorn bread' model (Ethereum protocol revenue is overtaken by Solana '10 times', and even the entire Layer2 is not enough to compete).