User activity on the Solana network surged in early May, driving notable gains in network revenue.
Solana’s daily network revenue, also known as real economic value (REV), has skyrocketed in recent weeks and hit $8.35 million on May 14, a total rise of 52.65% since the beginning of the month.
Even more impressively, on-chain data shows the figure stood above every other major Layer-1 and Layer-2 network.
Tron, the network with the second-highest REV on the day, had only $2.3 million, and Ethereum fell to the third place with just $1.79 million.
Real economic value, often called network revenue, tracks in-protocol transaction fees and out-of-protocol tips and measures a blockchain’s value accrual from user activity.
The rise coincided with a notable uptick in the price and trading volume for Solana’s native token, SOL. Price action in particular proved dramatic as the cryptocurrency started the month at about $150 and hit a high on May 13 when it crossed above $184.
Why Solana has been surging in May
Heightened volume, REV, and token value can be attributed to the buying pressure stemming from a 172,670 SOL purchase executed by the DeFi Development Corporation (NASDAQ: JNVR) on May 12.
Furthermore, the purchase contributed to the prevailing retail and institutional interest in the token that arose from the broader cryptocurrency market factors and from the optimism surrounding the possible spot Solana exchange-traded fund (ETF).
However, the SEC postponed its ETF decision on May 13, contributing to a more recent correction.
The drop continued, and the 5.14% price drop in the last 24 hours, which took SOL to its press time price of $171.81 and diminished the monthly gains to 29.79%, can likewise be attributed to a wider digital asset selloff and developments more intimately associated with the token.
The correction took place across the board as, after days of gains, the total market capitalization of cryptocurrencies fell nearly $45 billion in a day.
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