The Solana network continues to make waves, with its Jito staking pool generating over $100 million in monthly revenues from tips and priority fees in November and December 2024. This milestone, reported by cryptocurrency researcher Kairos Research on December 26, highlights Jito’s growing dominance in Solana’s ecosystem.
Explosive Growth in Revenue
Jito’s validators achieved an average 32% monthly growth in tip revenues throughout 2024, according to Kairos. November marked the peak, with earnings reaching approximately $210 million. This surge reflects Solana’s rising adoption and the lucrative practice of Maximum Extractable Value (MEV).
MEV allows validators to prioritize transactions for additional fees. Users pay these tips to ensure their transactions are executed in a specific order, particularly during block-building. While this benefits users seeking guaranteed execution, it also increases overall transaction costs.
Solana’s MEV Advantage
In 2024, Solana validators outpaced Ethereum in MEV earnings for the first time. Transaction fees on Solana skyrocketed, climbing from 60,000 SOL daily in January to more than 150,000 SOL by October, according to Dune Analytics.
Additionally, more than 93% of Solana validators now utilize Jito’s MEV software to maximize their block-building revenues, as reported by Jito Labs.
Restaking and JitoSOL: A New Frontier
Jito also offers a liquid restaking token (LRT), known as JitoSOL, which has positioned itself as a leader in decentralized finance (DeFi) on Solana. With nearly $2.75 billion in total value locked (TVL), JitoSOL is one of the most prominent protocols in Solana’s staking ecosystem, according to DefiLlama.
Restaking allows users to use staked tokens as collateral for other protocols, increasing earning potential. JitoSOL provides tradable claims on pools of restaked assets, combining liquidity and staking rewards.
In October, Jito governance token (JTO) holders approved a plan to distribute 0.15% of tip revenues to JitoSOL restakers. Validators will still retain the majority of MEV income, but this shift incentivizes more participation in the JitoSOL ecosystem. As of December 26, JitoSOL restakers earn an 8.6% yield.
Despite Jito’s impressive growth, Ethereum continues to lead in staking and restaking TVL. Its top restaking protocol, EigenLayer, holds nearly $15 billion in value, dwarfing Solana’s numbers.
