Solana (SOL), Litecoin (LTC), and Hedera (HBAR) made their US debuts, and the anticipated ETFs have begun trading. While Solana has had great success with ETFs, it has lagged behind in another area. According to The Block, Solana's share of L1 fees has fallen to single digits. At this point, Hyperliquid (HYPE) and BNB Chain have attracted investor attention this year by increasing their share of the large Layer 1 (L1) fee market. In contrast, Solana's share of the main Tier 1 network fees fell from over 50% at the beginning of the year to just 9%. In the face of the fading decline, Hyperliquid's share rose to over 40%, while BNB Chain's share rose to around 20%. This shift has been attributed to multiple factors, including market demand, user preferences, and structural changes. The decline in Solana’s fee revenue was primarily attributed to the decline in memecoin trading on the network. Data suggests that the memecoin trading frenzy on Solana decreased sharply following the launch of the ‘TRUMP’ token earlier this year, which was the primary driver of the revenue decline. Memecoin trading once accounted for the majority of the Solana network's fee revenue, but activity has since declined significantly, reducing network traffic. In contrast, Hyperliquid and BNB Chain rapidly increased their fee share by strengthening their revenue structures focused on derivatives trading. Because derivatives trading generates higher fee revenue per transaction unit than memecoin trading, even a relatively small increase in user numbers led to a large increase in network revenue share. *This is not investment advice. Continue Reading: Solana (SOL) Experienced a Major Pullback in This Area! Lost Its Place to These Two Altcoins!
Stablecoins step into the remittance game
