As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find Michael Nadeau’s insights on Solana and Ethereum intriguing. Having witnessed the ebb and flow of various blockchains, I can attest that TVL migration is crucial for long-term success.
According to Michael Nadeau, the founder of The DeFi Report, a significant amount of the value that moved to Solana actually found its way back to Ethereum, since Solana has been receiving funds from other blockchains.
In an X post, Nadeau said that Solana needs to pull total value locked (TVL) from Ethereum and layer-2 networks. He wrote:
“[…] But the only thing that really matters for Solana is pulling TVL from Ethereum (and the L2s). Why? That’s where all the value sits today. Is it happening? Not really.”
According to information from the crypto data platform Artemis, Nadeau pointed out that as of now, Solana has seen a decrease of approximately $55 million in Total Value Locked (TVL) compared to platforms like Base, Optimism, and Arbitrum this year.
Over $1 billion flowed back to Ethereum
Nadeau additionally highlighted that Solana received approximately $2.36 billion from Ethereum in its year-to-date graph, but he also mentioned that over $1 billion subsequently returned to Ethereum. This equates to around 42% of the initial flow going to Solana.
The executive also said that the amount that flowed to Solana from Ethereum YTD is “modest” as it only accounted for 2.7% of the blockchain’s TVL.
At the time of writing, data provider DefiLlama shows that Ethereum has over $50 billion in TVL.
According to the founder of The DeFi Report, although Ethereum has experienced a total outflow of $6 billion so far this year, about 83% of those funds have been directed towards layer-2 blockchain networks. Nadeau considers these funds as assets that are still part of the overall ecosystem.
The executive believes these assets will continue to drive value to layer-1, explaining that most of the value that left the chain is being used within its ecosystem.
Solana flips Ethereum in blockchain fees
On October 28th, I observed a significant shift as Solana overtook Ethereum in daily transaction fees. In a span of 24 hours, Solana amassed an impressive $2.54 million in fees, outperforming Ethereum’s $2.07 million. This remarkable feat positioned Solana as the fifth-largest fee-generating protocol on that day.
The blockchain’s surge in fees generated is linked to the growing activity in Raydium, a decentralized exchange (DEX) and automated market maker built on Solana.
Read More
- DYM PREDICTION. DYM cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- Top gainers and losers
- TURBO PREDICTION. TURBO cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
- MPL/USD
2024-10-31 11:02