Solana DApps Achieve Record Daily Fees Driven by Meme Coin Surge
Solana-based decentralized applications (DApps) have achieved record levels in transaction fees and revenue. On November 18, 2024, Patrick Scott noted that five of the ten leading protocols by fees over the previous day operated on Solana’s blockchain, indicating increased activity within its ecosystem driven by a resurgence of meme coins.
Due to a memecoin frenzy, over the past 24 hours, half of the top 10 crypto protocols by fees generated were on Solana.
This is either a massive top signal or radical shift in market activity. pic.twitter.com/iKAbqSYx6j
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) November 17, 2024
Record-Breaking Fees for Solana’s Key Protocols
On November 17, Solana’s automated market maker Raydium recorded $11.79 million in daily transaction fees, setting a new platform benchmark. Jito, focused on liquid staking, secured $7.89 million in fees, marking its third-highest daily performance, according to DefiLlama.
Photo: DefiLlama
Pump.fun, a launchpad for meme coins, achieved its seventh-highest revenue day with $1.65 million in fees. Photon, a Telegram-based trading bot, earned $2.36 million in fees, its fifth-best day.
The fee surge correlates with the explosive growth of meme coins. Peanut emerged as a standout, increasing by 2,700% in two weeks and reaching a $2.4 billion market cap by November 14. High-profile endorsements, including promotions by Elon Musk on X, significantly contributed to its rise.
“If you strike me down, I will become more powerful than you could possibly imagine” Obi PNut Kenobi pic.twitter.com/dD2Xo0fSkr
— Elon Musk (@elonmusk) November 2, 2024
Dogwifhat, Solana’s largest meme coin, gained traction after its November 15 listing on Coinbase, pushing its value to $4.19, a six-month peak. This renewed activity in the meme coin sector has notably influenced the price of Solana’s native token, SOL.
Simon’s Cat Joins Solana Ecosystem
CAT, the meme coin associated with Simon’s Cat, is expanding to the Solana blockchain to attract new trading audiences. Long-term BONK holders will receive early access through a vault offering discounted CAT tokens, generating significant interest with deposits exceeding $240,000.
The Simon's Cat Vault has launched, providing a discounted price of 0.00003951 per $CAT for 12-month BONK token lockers. The vault exceeded its $100,000 target within 24 hours, allowing early adopters to withdraw deposits before closing.
Solana's appeal as a hub for meme coins has facilitated CAT’s transition from the BNB Chain. The blockchain's high-speed, low-cost network is attractive to retail traders, enhancing trading opportunities and liquidity for the growing meme coin.
Solana Gains Momentum, Nearing Record Highs
As of November 18, Solana is trading at $242, reflecting a 1.90% increase in the last 24 hours. The token remains 6.76% below its all-time peak of $260 from November 2021. Its market capitalization has risen to $112 billion, a 44% increase from the previous high of $77 billion recorded on November 6, 2021.
Factors contributing to this growth include renewed interest in meme coins and ongoing issuance of new tokens through an inflationary rewards system. Currently, Solana’s inflation rate is 4.9%, with a planned annual reduction of 15%, according to SolanaCompass data.