Meme frenzy boosts, protocol revenue surges, SOL/ETH hits all-time high

share
Meme frenzy boosts, protocol revenue surges, SOL/ETH hits all-time high

With SOL rising and ETH falling, the SOL/ETH exchange rate has hit a new all-time high. Solana has also seen significant increases in protocol revenue, network activity, open interest contracts, and other indicators.

SOL/ETH Hits All-Time High

According to TradingView, BTC has dropped by -1.46% in the past 24 hours, ETH by -4.39%, while SOL has risen by 1.96%. Over the past 7 days, SOL has seen an increase of 11%, making it one of the only two tokens in the top ten by market value to have increased, alongside DOGE at 9.58%.

The SOL/ETH exchange rate briefly reached 0.06925, surpassing the August high of 0.065, setting a new record. At the same time, SOL/BTC has also reached its highest point in over two months.

SOL/ETH Weekly Chart

Meme Craze Boosts Solana

Solana has greatly benefited from meme coin speculation, with most activities centered around DeFi protocols on the chain. The recent surge of Goatseus Maximus GOAT, which has seen its market value rise to $600 million and rank 207 in just two weeks since its launch.

Bizarre AI Experiment Leads to Meme Coin GOAT: AI Project Making Money with Meme Coins, Becoming the Most Powerful Shilling Machine

Protocol Revenue Surges

Token Terminal data shows that Solana's daily transaction fee revenue has exceeded $4 million, nearing its historical high in March, and has grown tenfold since the low point in early September.

Raydium alone has contributed $2.81 million to 2/3 of Solana's transaction fees, approaching Ethereum's $3.74 million. Meanwhile, Solana's active user count has also reached a new high, surpassing 8 million.

Solana Transaction Fees

Sharp Increase in Open Interest

According to CoinGlass, Solana's open interest has surged to over 18 million SOL, valued at $3.09 billion, the highest amount since January 2023.

In just the past four days, the open interest has increased by approximately 3 million SOL, worth $506 million. Currently, the perpetual contract funding rate has reached an annualized 10%, indicating that most investors are still bullish on SOL.

SOL Open Interest Data

Ignas: Institutional Adoption of ETH Underway

KOL Ignas also tweeted about the plight of ETH and the rise of SOL.

Ignas mentioned that during the bear market, he chose to invest in ETH and BTC because both were considered unlikely to disappear. However, with traditional financial capital entering Bitcoin, many long-term holders have begun to shift ETH to new tokens.

He believes BTC is a more stable choice, Solana is a riskier one, and ETH is stuck in between as its performance has not attracted enough attention. Only when the value accumulation of L2 is clearly confirmed, institutional adoption accelerates, and future ETH scalability plans ignite market enthusiasm, ETH can regain popularity. However, Ignas is not optimistic about the upcoming Pectra upgrade, pointing out that its appeal is not as strong as previous hard forks such as the transition to PoS.

Nevertheless, Ignas highlighted the positive aspects of ETH, especially the growing institutional adoption, such as Visa launching the Ethereum-based tokenized asset platform VTAP, and Blackrock planning to tokenize financial assets. Amid the adoption process and emerging FUD like the rise of SOL, Ignas is unsure if he can see a bright future in these uncertainties.