The layer-1 blockchain fee landscape has undergone a dramatic transformation in 2025, with Solana losing its dominant position to emerging competitors. Solana generated over 50% of major L1 fees earlier this year but now accounts for just 9% of the total as Hyperliquid and BNB Chain capture market share.
Hyperliquid and BNB Chain combined represented approximately 10% of total fees among major L1s at the start of the year. As of last week, Hyperliquid commands over 40% of the total while BNB Chain holds more than 20%. The shift reflects changing market appetite, user preferences, and structural changes that significantly impacted transaction flows.
Solana's Decline and the Meme Coin Factor
The Solana meme coin trading boom faded after peaking with the launch of the TRUMP meme coin earlier this year. The network has struggled to regain that level of activity despite multiple attempts to revitalize retail interest. The decline in speculative trading directly correlates with reduced fee generation across the ecosystem.
The Rise of Derivatives Trading
Derivatives trading generates substantially higher fees per unit of activity compared to meme coin transactions. Even moderate user growth on Hyperliquid can swing the fee share quickly due to this structural advantage. BNB Chain's recent integration of Aster has similarly benefited from the derivatives trading premium.
BNB Chain's Strategic Integrations
BNB Chain has gained significant traction through Binance Alpha and Binance Wallet integration. The direct on-ramp connection with the largest centralized exchange in crypto has funneled substantial retail flows and activity onto the blockchain. This seamless bridge between centralized and decentralized infrastructure provides a competitive moat.
Future Outlook for Solana and L1 Fee Dominance
Market analysts suggest Solana will require a native decentralized application to recapture significant adoption and attention. The network needs either a breakthrough DApp success or another Solana-centric speculative cycle similar to late 2024 and early 2025 to reverse current trends and restore fee generation momentum.
Failure to achieve either scenario likely means Hyperliquid and BNB Chain will maintain their dominant share of L1 fees. Rising crypto market volatility and sustained high derivatives volumes would further entrench their positions. The structural advantages of derivatives-focused chains may prove difficult for meme coin–driven networks to overcome.
Implications for Blockchain Fundamentals
The competitive dynamics highlight how blockchain utility drives long-term value capture. Networks optimizing for high-fee activities like derivatives trading and providing integrated exchange access are outperforming those reliant on speculative retail trading. This trend may reshape how investors evaluate layer-1 blockchain fundamentals going forward.