Solana Surpasses Ethereum in Daily Economic Value
NAIROBI (Coinchapter.com) – In a groundbreaking milestone, Solana’s daily economic value recently surpassed Ethereum’s, sparking widespread discussion regarding blockchain utility and adoption. This shift marks a significant 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, often used to analyze blockchain network utility and adoption. These figures underscore Solana’s growing influence in the blockchain space.
Total Economic Value. Source: Blockworks
Furthermore, Chris Burniske, a former analyst at Ark Invest, highlighted Solana’s achievement, emphasizing the importance of monitoring layer-1 blockchains that maintain 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
Moreover, proponents of Ethereum contend that excluding L2 solutions built atop the main Ethereum blockchain is misleading. These solutions aim to enhance scalability and reduce fees, effectively 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 acknowledged 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 grappled with high fees.
Notably, Ethereum’s fees have occasionally dropped below Tron’s, underscoring the dynamic nature of this highly competitive landscape. Certainly, 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
Notably, Solana’s price movements reflect its robust 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 tight range.
SOL/USD 1-day price chart. Source: TradingView
Notably, the Fibonacci retracement levels provide key insights. The 38.2% retracement level at $138.73 serves as strong support. The price has tested this level multiple times, indicating its significance. On the upside, the 23.6% retracement level at $159.62 acts as resistance.
Additionally, Solana’s price movements show consolidation within a range, suggesting potential for a breakout. The moving averages align with the current price, indicating stability. Certainly, if Solana maintains its upward momentum, it could challenge higher resistance levels, paving the way for further gains.
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