Solana Climbs to Third in Blockchain Revenue, Toppling MakerDAO Amidst Memecoin Hype

Solana has surpassed MakerDAO in terms of revenue, becoming the third-highest revenue generator in the Web3 industry with $31.58 million earned in March. This increase follows a surge in memecoin trading activity on the Solana blockchain, leading to higher transaction fees and subsequent revenue for the network.

Solana Surges in Revenue, Overtaking MakerDAO Amidst Memecoin Frenzy

Solana's blockchain ecosystem has experienced an exponential surge in revenue, propelling it to the third spot among the highest-grossing entities in the Web3 industry. As of March 30th, Solana's revenue reached a staggering $31.58 million, according to an analysis of Token Terminal data conducted by AMBCrypto.

This remarkable achievement marks a significant milestone for Solana, surpassing the revenue generated by the prominent lending protocol MakerDAO (MKR), which had consistently held the third position in recent months. Ethereum (ETH) and Tron (TRX) continue to dominate the top two spots in terms of revenue generation.

The surge in Solana's revenue can be attributed to a surge in the popularity of memecoin trading on its platform. Numerous memecoins have been minted on Solana's blockchain, attracting crypto enthusiasts eager to capitalize on the potential for high returns. This speculative activity has resulted in an increase in transaction volume, thereby boosting the network's fee revenue.

Solana's native token, SOL, has also benefited from the increased utilization of the blockchain ecosystem. SOL's price surged by over 50% in March, becoming one of the top market gainers. CoinMarketCap's data indicates that SOL has been among the most notable performers in the cryptocurrency space during the past month.

It is noteworthy that Solana employs a burning mechanism, whereby 50% of the fees collected by the network are destroyed. This deflationary policy exerts upward pressure on SOL's price, as the reduction in supply increases its scarcity.

The surge in SOL's price has also attracted the attention of derivatives traders. Data from Coinglass analyzed by AMBCrypto reveals that the Open Interest (OI) in SOL futures has increased to $2.74 billion, marking a 43% rise over the month. A rising OI accompanied by a rising market value is generally indicative of a bullish market sentiment among traders.

Currently, SOL is approximately 21% below its all-time high (ATH) of $249, which was established in November 2021. Crypto analyst Captain Faibik predicts that SOL's price could reach a new ATH in April. If this forecast materializes, it would represent a remarkable recovery for SOL, which plummeted to a low of $18 during the crypto market downturn in November 2022.