Solana's Jito staking pool surpasses $100M in monthly rewards.
Jito Labs’ emergence as a key player in the Solana ecosystem highlights a significant shift in blockchain economics.
With over 93% of Solana validators adopting its software to optimize earnings through Maximum Extractable Value (MEV), Jito has become instrumental in driving profitability and fostering growth within the network.
According to a Dec. 26 report by Kairos Research, Jito’s staking pool generated record revenues of over $100 million per month from priority fees and tips in November and December 2024. Validators using Jito’s MEV software experienced an average 32% monthly growth in tip revenues throughout the year, with revenues peaking at approximately $210 million in November. These figures demonstrate the lucrative potential of MEV practices on Solana, attracting increased participation among validators.
MEV has become a critical element of blockchain economics, enabling validators to prioritize specific transactions within blocks in exchange for tips. While ensuring transaction execution for users willing to pay a premium, MEV practices also contribute to higher transaction costs. Solana’s adoption of MEV has proven highly profitable, reflecting the network’s growing maturity and competitiveness.
In 2024, Solana validators surpassed Ethereum in MEV earnings for the first time. This shift is significant given Ethereum’s long standing dominance in MEV practices. It highlights Solana’s scaling and adoption efforts, contributing to a significant boost in transaction volumes and fee revenue.
Dune Analytics reported a dramatic increase in Solana’s daily transaction fees, nearly tripling throughout 2024. Starting at around 60,000 SOL per day in January, fees surged to over 150,000 SOL by October. This growth demonstrates the network’s increased activity and the role of MEV in monetizing it.
The rise of MEV revenues and Solana’s surpassing of Ethereum in this area reflect broader trends in blockchain evolution. Solana’s success showcases the power of efficient, scalable networks in capitalizing on decentralized finance (DeFi) and other Web3 use cases. Jito Labs’ pivotal role illustrates the importance of infrastructure providers in shaping the economic landscape of blockchain ecosystems.
Looking forward, as Solana continues to grow, its competitive positioning against other blockchains, particularly Ethereum, could drive further innovation in MEV strategies, validator participation, and overall network activity.
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