As the day ended on October 21, the crypto market was rife with Solana flipping Ethereum (ETH) sentiment. Amidst this, Solana-based liquid staking service protocol Jito crossed Ethereum and USDC in fees collection, causing ripples in the blockchain.
Jito became the second-highest fee-collecting protocol by gathering $4.16 million in 24-hour fee collection. It's behind the market leader Tether (USDT).
The rise in fee collection by the Solana-based stacking service made it the too decentralized application (dApp) if we exclude stablecoin protocols like Tether and Circle. This is further enhancing Solana’s performance as Jito distributes it Maximum Extractable Value (MEV) rewards to Solana users.
Jito’s increased fee collection is being linked with a rise in Solana (SOL) meme coins prices, which in turn is raising the MEV rewards. In the last few days, Solana processed its all-time high DEX volume of over $2 billion, 33% across all blockchains. This resulted in a high number of new Solana tokens launch, hitting a daily peak of 36000. As of October 21, the number of new Solana coins created is double the earlier high numbers observed in July this year which shows a surge in on-chain trading activity.
Like Jito, Solana’s leading DEX, Raydium has also seen an increase in protocol fees as it touched $16 million over the weekend. Just 2 million short of its second-highest weekly fee collection this year, $18 million collected in July.
The increase in fees collection in Jito also meant that its liquid stacking token JitoSOL has grown immensely as it offered rewards from MEV transactions. Despite this, crypto users successfully maintained liquidity for DeFi integrations. Liquid staking tokens (LSTs) on Solana touched a new record as its market capitalisation reached $4.95 billion
With the growth of Solana-based networks, the crypto is debating whether to measure its success by DEX volume of token activity with many suggesting the best method to be the economic value generated by the chain.
Solana is making 90% of Ethereum's fees at present as it collected $3.09 million in fees in the 24 hours leading up to October 22, higher than Ethereum’s $3.41 million. The first time Solana flipped Ethereum in revenue generation and fee collection was in July this year when the two chains were running head-to-head in economic value.
Jito is slated to be a key player in the Solana DeFi landscape as crypto traders earn from JitoSOL and MEV rewards, boosting the protocol’s fee collection. This liquid stacking protocol will further benefit as traders bank on the Solana flipping Ethereum sentiment.
As of October 22, SOL is trading at $169.95 (up 3.84%) with a market capitalization of $79.84 billion (up 3.84%) and a trading volume which is down by 9% in the last 24 hours to reach $3.68 billion. Meanwhile, JitoSOL is trading at $194.60 (up 3.94%) having a trading volume of $21.17 million (down by 49.47%) and a market capitalisation of $2.28 billion (up 4.03%).