Hyperliquid and BNB Chain capture majority of L1 fees as Solana fades amid derivatives boom
Quick Take Solana’s memecoin trading ecosystem began declining earlier this year, arguably after the launch of the TRUMP token. The following is excerpted from The Block’s Data and Insights newsletter.
The landscape of fees generated by major Layer 1 blockchains has shifted tremendously this year.
Earlier in the year, Solana generated over 50% of the fees among major L1s, yet it now makes up just 9% of the total. The reason for this decline can be attributed, in part, to fierce competition from both Hyperliquid and BNB Chain.
Earlier in the year, Hyperliquid and BNB Chain combined represented around 10% of the total fees generated among major L1s. As of last week, they each made up over 40% and 20% of the total, respectively.
This shift was likely caused by a multitude of factors in market appetite, user preferences, and structural changes that significantly impacted flows.
The first and most obvious sign of change was the fading of Solana's memecoin trading boom from earlier this year, which arguably peaked with the launch of the TRUMP memecoin. The chain has failed to regain that level of activity since.
Moreover, derivatives trading generates meaningfully higher fees per unit of activity than memecoin trading, so even moderate user growth on Hyperliquid, and more recently, BNB Chain with Aster, can swing the fee share quickly. BNB Chain has also benefited greatly from Binance Alpha and Binance Wallet, as an integrated on-ramp with the largest centralized exchange in crypto likely funneled significant retail flows and activity onchain.
Over the next several months, Solana will likely require a native dApp to catch significant adoption and attention velocity that could bring flows back to the network, or another Solana-centric speculative cycle akin to late 2024/early 2025. Failure of either option likely means Hyperliquid and BNB Chain continue to keep a large share of the fees generated among major L1s away from Solana, especially if crypto market volatility rises and derivatives volumes stay high.
This is an excerpt from The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
HBAR ETF Gets Green Light, But Convincing Altcoin Doubters Remains Challenging
- Hedera's HBAR token dropped 6% post-ETF approval, contrasting with Solana's $56M debut volume. - The $8M HBAR ETF launch highlights altcoin market skepticism despite regulatory progress and institutional backing. - Technical indicators like death cross and declining on-chain metrics signal bearish momentum for HBAR. - Analysts note ETFs provide regulated institutional access, though broader crypto volatility and SEC delays dampen immediate adoption. - Hedera's enterprise partnerships and USDC growth on i
Ethereum Updates Today: The Foundation of Blockchain Enters the Public Eye as Consensys Engages with Wall Street
- Consensys, MetaMask's developer, hires JPMorgan and Goldman Sachs for IPO advisory, joining crypto peers like Circle and Bullish in public market moves. - MetaMask expands beyond wallet functionality with MASK token launch and Polymarket integration, while Consensys operates key Ethereum infrastructure like Infura and Linea. - Favorable market conditions include Fed rate cuts, SPAC fundraising growth, and institutional crypto adoption, positioning Consensys for potential 2025 listing as Wall Street embra
The CEO's Independent Journey: Creating Innovation While Navigating Solitude and Market Pressures
- Apple, Airbnb, and PepsiCo CEOs highlight leadership isolation amid innovation pressures and market volatility. - Apple introduces vapor chamber cooling for M6 iPad Pro (2027) and local ads in Maps (2026) to boost revenue. - Airbnb faces insider stock sales and post-pandemic challenges as CEO Chesky navigates hybrid work-travel shifts. - Talkspace acquires Wisdo Health to address leader loneliness through AI-driven mental health solutions. - Tesla's Tavares warns of existential risks from Chinese EV comp
Regulations and Technological Advances Shape Corporate Approaches in 2026
- Simply Good Foods (SMPL) reported a 17.5% stock drop due to Q4 2025 losses and 2026 guidance, citing flat sales and margin declines, with plans for marketing and buybacks. - British American Tobacco delayed Vuse One vape launch amid FDA scrutiny, reflecting industry-wide regulatory challenges for nicotine products and market uncertainty. - Wix partnered with PayPal to integrate AI-driven commerce tools, enabling merchants to leverage AI for product discovery and payments via agentic commerce platforms. -
Trending news
MoreCrypto prices
More
