Daily Transaction Fees On Solana Spike 1,000% Since January

Traders on Solana are witnessing a wild surge in fees as the memecoin frenzy carries on.

Daily transaction fees have soared from $361,000 on Dec. 31 to an all-time high of $4.95 million on March 17, according to DefiLlama. Transaction costs dropped to $3.29 million today, however, which still represents a near 10X from less than three months ago.

The Layer 1 network’s revenue has also skyrocketed, soaring from $180,000 on the last day of 2023 to a peak of $2.47 million on March 17. Today, the network raked in $1.64 million, a slight drop from the previous day.

Riding the memecoin frenzy, decentralized exchanges in the Solana ecosystem are also enjoying a ton of usage.

According to DefiLlama, monthly DEX volume during the first twenty days of March outpaced the previous all-time high of $28 billion in December 2023. This month, $42 billion of trading volume has been recorded, a whopping 33% jump in a month with eleven days still to go.

Meanwhile, daily trading volume also topped its previous maximum, soaring to $2.8 billion on March 4.

Coingecko reports that Jupiter is second for 24-hour volume among all DEXs, with $1.2 billion traded, trailing Ethereum’s Uniswap, a platform that, with $2.1 billion, accounts for 18% of all volume. Further down the line, but still within the top 10, are Orca with $876 million and Raydium with $665 million in the same timeframe.

Memecoin traders are flocking to Solana, high on the supply of DogWifHat, BOME, and the unbelievable Slerf burn, translating into high fees, substantial revenues, and a Solana market cap that surged past its all-time high last week and now sits at $81 billion.