The post It may be mean reversion time for Ethereum and Solana appeared on BitcoinEthereumNews.com.

Today, enjoy the Lightspeed newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Lightspeed newsletter.  There’s been much made of Solana’s DeFi resurgence that has put it neck-and-neck with Ethereum in multiple key metrics.  But by one count, Ethereum is now pulling meaningfully ahead of the next-biggest smart contract blockchain.  Total economic value (TEV) is a Blockworks Research-created stat that measures a blockchain’s transaction fees and maximal extractible value (MEV) tips. This can be thought of like the income a blockchain receives, and it’s a helpful counterpoint to active addresses — a mostly-meaningless measure that’s been having too much time in the sun lately. For most of the blockchains’ respective histories, Ethereum’s TEV has been several multiples of Solana’s. But earlier this year, as more Ethereum activity fled to layer-2s in search of cheaper fees and Solana saw a memecoin-inspired volume frenzy, Solana basically evened the score.  Outside of a brief Ethereum income spike around the beginning of June that roughly coincided with ether ETFs being approved, Solana and Ethereum TEV have moved roughly in tandem for most of this year — until the past couple weeks, when Ethereum spiked to seven times Solana’s TEV.  The gap has narrowed slightly in the past couple days, but it’s still the most meaningful TEV divergence we’ve seen in months.  Amid the spike in Ethereum TEV, Ethereum’s average gas price climbed nearly 500% over the past 10 days above its prior 30-day moving average, according to Coinbase analysts.  When I posed to X the question of why Ethereum is retaking the lead, I was quickly told that Ethereum’s base layer has seen a resurgence in memecoins, ever the driver of blockchain income.  But digging a bit deeper, it’s not quite clear that this is the case. A couple…

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Filed under: News - @ September 27, 2024 6:22 pm