The crypto world is a fickle beast. One minute, Solana's memecoin mania is dominating headlines and transaction fees. The next, it's struggling to regain its footing as Hyperliquid and BNB Chain steal the spotlight. Hyperliquid and BNB Chain capture majority of L1 fees as Solana fades amid derivatives boom highlights this dramatic shift, showing Solana's fee generation plummeting from over 50% of major Layer 1 blockchains to a mere 9%. Meanwhile, Hyperliquid and BNB Chain have surged, now accounting for over 40% and 20% respectively.
This isn't just a random fluctuation. It's a clear indicator of where the speculative energy—and the transaction fees that come with it—is currently flowing. The fading of Solana's memecoin boom, particularly after the TRUMP memecoin peak, is a major factor. Memecoins, while exciting, simply don't generate the same level of fees as derivatives trading. Derivatives trading, on the other hand, is a high-fee game. Even moderate user growth on platforms like Hyperliquid, and more recently BNB Chain with Aster, can rapidly alter the fee landscape.
BNB Chain's success is further amplified by its integration with Binance. As the largest centralized exchange, Binance acts as a powerful on-ramp, funneling retail flows and activity directly onto the BNB Chain. This integrated ecosystem creates a self-reinforcing cycle of activity and fee generation.
Fast forward to late 2025, and the narrative takes an interesting turn. 21Shares has filed for a Hyperliquid ETF, potentially the second HYPE-focused ETF to trade on U.S. exchanges, following a Bitwise proposal. HYPE, the native coin of the Hyperliquid decentralized exchange, is now the 16th largest cryptocurrency by market cap, boasting a $12.7 billion valuation. (That's a substantial leap from relative obscurity just a year or two prior.)
The SEC is now weighing over 90 applications for crypto-focused ETFs, spanning a variety of altcoins and strategies. The success of Bitcoin and Ethereum ETFs, managing over $155 billion and $23.4 billion in assets respectively, has fueled the demand for more crypto-focused investment products. These ETFs provide traditional investors with access to crypto without the complexities and security concerns of direct ownership. The 21Shares filing explicitly acknowledges this, stating that "buying, holding and selling HYPE is very different from buying, holding and selling more conventional investments like stocks and bonds."
What does this mean for Solana? The Block's analysis suggests that Solana needs a new native dApp or another speculative cycle to regain its former dominance. But the rise of Hyperliquid, and the potential approval of a HYPE ETF, suggests a different dynamic. The market isn't just about memecoins anymore. It's about sophisticated trading platforms and institutional investment vehicles.
And this is the part of the report that I find genuinely puzzling. While the article correctly points out the importance of derivatives trading, it doesn't fully explore why Hyperliquid has become a hub for this activity. Is it the platform's technology, its user interface, or simply a first-mover advantage? Details on Hyperliquid's specific features and competitive advantages remain scarce, but the impact is clear.
The shifting landscape of Layer 1 fees is a stark reminder that dominance in the crypto world is never guaranteed. Solana's decline, while concerning for its proponents, isn't a death knell. It's a call to adapt and innovate. The rise of Hyperliquid and BNB Chain demonstrates that new platforms and strategies can quickly capture market share. Ultimately, the real winner in this evolving ecosystem will be the blockchain that can adapt to changing user preferences and market dynamics. The market cap of HYPE, at $12.7 billion, is impressive. Growth was about 30%—to be more exact, 32%.
The story isn't just about Solana losing ground. It's about the market maturing beyond simple memecoin speculation. It's about the rise of sophisticated DeFi platforms like Hyperliquid and the growing acceptance of crypto by traditional investors. If you can't adapt, you're dead.
