Solana's App Revenue Led Layer-1 Blockchains in May 2025
In May 2025, the Solana network topped all Layer-1 blockchains with approximately $91 million in app revenue, briefly surpassing Ethereum. This milestone performance sparked widespread attention and discussion in the market regarding the concept of "revenue-generating Layer-1s."
According to data from that period, other major Layer-1 blockchains' app revenue performance was as follows:
- Hyperliquid L1 recorded approximately $5.3 million in app revenue. It is worth noting that reports at the time indicated significant discrepancies in this data, with another figure suggesting $53 million.
- Ethereum's app revenue was around $5.2 million, also with reported data discrepancies, another figure suggesting $52 million.
- Polygon and Base followed with approximately $2.6 million and $2.3 million in app revenue, respectively.
Meme Coin Trading Drove Revenue Growth, But Sustainability Challenges Remain
Solana's revenue surge in May 2025 was primarily driven by active trading on its decentralized exchanges (DEXs), with Raydium and Orca being major contributors. Notably, Meme coin trading dominated these DEX activities. As of May 2026, Meme coin trading accounted for over 62% of Solana's app revenue.
While this Meme coin-driven revenue model significantly boosted on-chain activity and revenue in the short term, it also raised industry concerns about its sustainability. Many analysts believe that the speculative nature of Meme coins implies high revenue volatility and a lack of long-term stability, suggesting that the Solana ecosystem needs to seek a more balanced and healthy growth path.
The Rise of "Revenue-Generating Layer-1s" and Industry Perspectives
Solana's outstanding performance accelerated the popularization of the "revenue-generating Layer-1" concept. This concept emphasizes that blockchain protocols should have the ability to generate their own revenue, much like traditional companies, by providing valuable services to ensure the long-term security and sustainable development of the network. Metrics measuring this ability, such as "Real Economic Value (REV)," began to gain importance. REV not only considers basic transaction fees but also includes priority fees and Maximal Extractable Value (MEV) tips to more comprehensively reflect market demand for block space. In May 2025, Solana performed exceptionally well in both Network REV and App Revenue.
Discussions about Layer-1 revenue models also continued. Solana co-founder Anatoly Yakovenko questioned certain Layer-1 models that rely on high Gas fees, arguing that applications should monetize through front-end rather than over-relying on on-chain fees. Arbitrum co-founder Steven Goldfeder, however, countered that projects building their own chains to control sequencers and most of the revenue, becoming "landlords" rather than "tenants," might be a superior business choice.
Recent Developments: Evolution of Solana On-Chain Protocol Revenue Landscape
Entering September 2026, the on-chain protocol revenue landscape on Solana continues to evolve. As of September 7, 2026, Fomo Protocol's daily revenue has reached $1.76 million, surpassing Pump.fun (daily revenue of approximately $1.1 million) to become the highest daily revenue protocol on the Solana chain, demonstrating the vitality of competition and innovation within the ecosystem.
