Solana Staking Pool Jito Reports Monthly Revenues Exceeding $100M in Priority Fees and Tips for November and December

The Solana staking pool Jito has reported monthly revenues exceeding $100 million in priority fees and tips for November and December, as per a recent update from Kairos Research.

Solana (SOL) staking pool Jito has reported hefty monthly revenues exceeding $100 million in priority fees and tips for November and December, as per a recent update from Kairos Research. Throughout 2024, tips revenue for Jito’s validators surged by an average of 32% monthly, peaking at approximately $210 million in November.

This surge is attributed to the increasing popularity of the Solana network and the rising earnings of validators from Maximum Extractable Value (MEV), a process where specific transactions are prioritized over others. To ensure their transactions are executed as intended during block building, users tip validators, resulting in higher transaction costs.

Interestingly, Solana’s validators earned more from MEV than Ethereum’s validators in 2024, coinciding with a rise in transaction fees on Solana from 60,000 SOL daily in January to over 150,000 in October, as per Dune Analytics data. As of December 26, over 93% of Solana validators utilize Jito’s software for optimizing block-building earnings, as reported by Jito Labs.

Moreover, Jito issues a liquid restaking token (LRT) called JitoSOL, and it has become Solana’s leading decentralized finance (DeFi) protocol, with a total value locked (TVL) reaching nearly $2.75 billion, as per DefiLlama. By restaking, tokens already staked with a validator can be used to secure other protocols, providing tradable claims on restaked asset pools. Notably, holders of Jito’s governance token, JTO, approved allocating a portion of tip revenues to JitoSOL restakers, with Jito planning to redirect 0.15% of tip revenue to restakers, while validators keep most of the income from tips. At the time, JitoSOL restakers were yielding around 8.6%. It’s worth mentioning that Ethereum still leads in staking and restaking TVL, with EigenLayer holding nearly $15 billion.