The Jito protocol of Solana recorded monthly revenues exceeding 100 million dollars thanks to the maximum extractable value (MEV). With 93% of the validators involved, Solana consolidates its role in the global blockchain ecosystem.
Let’s see all the details in this article.
Jito and liquid restaking: innovation and earnings for the Solana ecosystem
The year 2024 is confirmed as a crucial year for the Solana blockchain ecosystem, with the Jito protocol achieving extraordinary results.
According to Kairos Research, Jito exceeded 100 million dollars in monthly revenues from priority fees and tips in November and December.
This success reflects not only the growing popularity of the Solana network, but also the effectiveness of its implementation of maximum extractable value (MEV).
The maximum extractable value (MEV) refers to the ability of validators to maximize profits by prioritizing certain transactions during block creation.
This mechanism, while contributing to increased transaction costs for users, ensures that operations are executed quickly and reliably.
In 2024, for the first time, Solana validators earned more from MEV than their counterparts on Ethereum.
According to Dune Analytics, the transaction fees on the Solana network have nearly tripled over the course of the year, increasing from about 60,000 SOL per day in January to over 150,000 SOL in October.
The software of Jito, used by over 93% of Solana validators, has played a key role in this bull increase, optimizing the gains of the validators and consolidating the network as a leader in the bear sector.
JitoSOL and liquid restaking
Another key factor in Jito’s success is the liquid restaking token JitoSOL. This tool allows users to use tokens already staked as collateral to secure other protocols, thus increasing their yield potential.
With a total value locked (TVL) of nearly 2.75 billion dollars, Jito is now the most popular DeFi protocol on Solana, according to DefiLlama.
In October, the holders of the governance token JTO voted to allocate 0.15% of the tip revenues to the JitoSOL restakers. This innovation not only rewards the active users in the ecosystem but also strengthens the investors’ trust in the protocol.
Despite the successes of Solana and Jito, Ethereum remains the leader in the staking and liquid restaking sector. EigenLayer, the main restaking protocol of Ethereum, boasts a TVL of nearly 15 billion dollars, a figure that demonstrates the strength of the network.
However, Solana is quickly establishing itself as a serious competitor, thanks to its ability to innovate and attract validators and investors.
With returns of 8.6% for JitoSOL restakers and a strategy focused on maximizing validator revenues, Solana is in a privileged position to continue its growth in the bull and bear cryptocurrency market.
The expansion of the opportunities offered by MEV and liquid restaking could consolidate the role of Solana as one of the main global blockchain platforms.
In other words, the future looks bright for Jito and the Solana ecosystem, which continue to redefine the boundaries of innovation in decentralized finance.
With an increasingly strong base of validators and advanced technology, Solana could be set to redefine the standards for the entire blockchain sector.