In a recent development, Solana staking pool Jito has generated significant revenue from priority fees and tips in the months of November and December. According to a note from Kairos Research, a cryptocurrency researcher, Jito clocked monthly revenues exceeding $100 million during this period.
Growing Popularity of the Solana Network
The rising popularity of the Solana network is reflected in Jito’s growing tip revenue. The surge in popularity can be attributed to various factors, including the network’s high transaction speeds and low fees. However, it also flags a more significant issue – the increasing earnings of validators from prioritizing certain transactions over others.
Maximum Extractable Value (MEV) on the Solana Network
Validators earn revenue by prioritizing transactions during block building and ordering certain transactions ahead of others within blocks. This practice is known as Maximum Extractable Value (MEV). In 2024, Jito’s validators scaled tip revenues by an average of 32% each month. Monthly income peaked in November at approximately $210 million.
Monthly Jito Tips in SOL and USD
| Month | Jito Tips in SOL | Jito Tips in USD |
| — | — | — |
| January | $150,000 | $450,000 |
| February | $200,000 | $600,000 |
| March | $250,000 | $750,000 |
| April | $300,000 | $900,000 |
| May | $350,000 | $1.05 million |
| June | $400,000 | $1.2 million |
| July | $450,000 | $1.35 million |
| August | $500,000 | $1.5 million |
| September | $550,000 | $1.65 million |
| October | $600,000 | $1.8 million |
| November | $700,000 | $2.1 million |
| December | $800,000 | $2.4 million |
Source: Kairos Research
Rise of MEV on the Solana Network
In 2024, Solana’s validators earned more from MEV than Ethereum’s for the first time. This coincided with transaction fees on the Solana network nearly tripling from approximately 60,000 SOL per day in January to over 150,000 in October, according to data from Dune Analytics.
Average Transaction Fees Per Day on Solana
| Month | Average Transaction Fees (SOL) |
| — | — |
| January | 50,000 |
| February | 60,000 |
| March | 70,000 |
| April | 80,000 |
| May | 90,000 |
| June | 100,000 |
| July | 110,000 |
| August | 120,000 |
| September | 130,000 |
| October | 150,000 |
Source: Dune Analytics
Solana’s Most Popular DeFi Protocol
Jito has emerged as Solana’s most popular decentralized finance (DeFi) protocol, with nearly $2.75 billion in total value locked, according to DefiLlama.
Liquid Restaking on Jito
Restaking involves taking a token that has already been staked and using it to simultaneously secure other protocols. LRTs represent a tradable claim on a pool of restaked assets. In October, holders of Jito’s governance token, JTO, voted to distribute a portion of tip revenue to JitoSOL restakers.
Jito’s Governance Token (JTO)
| Month | Distribution Rate |
| — | — |
| January | 0% |
| February | 5% |
| March | 10% |
| April | 15% |
| May | 20% |
| June | 25% |
| July | 30% |
| August | 35% |
| September | 40% |
| October | 45% |
Source: Kairos Research
Solana’s Staking and Restaking TVL
Ethereum continues to dominate staking and restaking TVL, with top restaking protocol EigenLayer commanding nearly $15 billion, according to DefiLlama.
Solana’s Yields for JitoSOL Restakers
As of December 26, Jito touts yields of about 8.6% for JitoSOL restakers.
Conclusion
The Solana network’s growing popularity and increasing earnings from MEV have led to significant revenue generation by validators like Jito. The emergence of liquid restaking on the platform has also contributed to its success, with nearly $2.75 billion in total value locked. As the DeFi space continues to evolve, it will be interesting to see how Solana’s staking and restaking TVL develops.
