Analyst: If Solana's on-chain trading ecosystem is viewed as an "independent financial category", its profitability level is only second to stablecoins and L1

In a report released this week, David Duong, Director of Institutional Research and Analyst at Coinbase, along with David Han, pointed out that if Solana's on-chain transaction ecosystem is considered an "independent financial category", it currently ranks third in profitability, only behind stablecoins and Layer 1. David Duong noted: "Solana's transaction-related activities usually account for 75-90% of the chain's easy fees, much higher than other networks such as Ethereum, Base and Arbitrum. Although second-layer solutions also show growth and innovation, they typically face different scalability challenges and user fragmentation issues compared to Solana. The fee dynamics and user activity patterns of Solana remain unique."

The analysis also pointed out that Meme tokens have always been the core narrative of this bull market round and are the best-performing cryptocurrency sector this year (measured by total market value growth). Most activities occur on Solana mainly revolving around pump.fun becoming increasingly popular as the main Memecoin launch platform. So far more than three million tokens have been issued on pump.fun. The dominant position of Solana-related trading activities is reflected in their contribution to network transaction fees; they account for over 82% of all non-voting fees paid on the network.