Solana Overtakes Ethereum in 2025 With $2.5B Annual On‑Chain Revenue
Solana has surged past Ethereum in annual on‑chain revenue, reaching an estimated $2.5 billion year‑to‑date in 2025 versus Ethereum’s roughly $1.4 billion. Earlier reporting showed Solana accelerating from about $28 million in 2021 to $1.4 billion in a previous estimate; the latest data (CryptosRUs, verified by DeFi Development Corp) updates that figure to $2.5 billion, driven by very low fees (average tx < $0.01), high throughput (2,000+ TPS), meme‑coin trading, DeFi activity, DEX volume and AI app usage. Monthly revenue averaged near $240 million from Oct 2024–Sep 2025, with a peak month above $616 million (Jan 2025). Network metrics cited include 1.2–1.5 million daily active addresses and a 372% increase in RWA capital. Institutional adoption accelerated after U.S. Solana ETF launches (Bitwise listed Oct 28, 2025, with $57M first‑day volume; other issuers followed), and nearly $700M of inflows were reported to Solana ETFs across sources. The coverage contrasts Solana’s revenue growth with Ethereum’s declining on‑chain revenue (from multi‑billion highs to about $1.4B), attributing part of Ethereum’s fall to value capture shifting to L2s, sequencers and staking services. Traders should monitor SOL and ETH fee/revenue metrics, ETF flows, institutional announcements, and on‑chain activity (DEX volume, NFT/meme‑coin trading, RWA inflows) for potential volatility and longer‑term reallocation toward low‑cost L1s.
Bullish
The revenue flip is bullish for SOL because rising on‑chain revenue, high TPS and low fees strengthen Solana’s value capture narrative and can attract capital, especially via ETFs and institutional products. Short term, ETF listings and large inflows can drive buying pressure and higher volatility in SOL. Increased on‑chain activity (DEX volume, meme‑coin trading, RWA inflows) tends to lift fee revenue and market sentiment, supporting continued demand. Over the medium to long term, sustained superior revenue vs. Ethereum could prompt portfolio reallocation toward SOL and other low‑cost L1s. However, risks remain: concentration in speculative token markets (meme coins), network outages or infrastructure issues, and regulatory or institutional adoption setbacks could reverse gains. ETH impact is mixed: lower on‑chain revenue may cap ETH upside from fee capture, but Layer‑2 growth and staking demand keep fundamental use cases intact, so ETH faces competitive pressure rather than an immediate collapse.