TL;DR
- Solana’s Jito staking pool achieved over $100 million in monthly revenues from priority fees and tips in November and December 2024.
- Jito’s validators increased tip revenues by an average of 32% each month in 2024, with monthly income peaking at approximately $210 million in November.
- For the first time, Solana’s validators earned more from MEV than Ethereum’s validators in 2024, with over 93% of Solana validators using Jito’s software.
Solana‘s Jito staking pool has achieved a remarkable milestone, clocking monthly revenues from priority fees and tips of over $100 million in both November and December 2024. This impressive performance was highlighted in a December 26 note from Kairos Research, a prominent cryptocurrency research firm.
The consistent growth in Jito’s tip revenues underscores the increasing popularity of the Solana network and the effectiveness of Jito’s staking solutions.
Growth in Tip Revenues
In 2024, Jito’s validators scaled tip revenues by an average of 32% each month, with monthly income peaking at approximately $210 million in November. This growth reflects the rising earnings of validators who prioritize certain transactions over others, a practice known as Maximum Extractable Value (MEV).
Users pay validators tips to ensure their transactions are prioritized during block building, which helps guarantee proper execution but also contributes to higher transaction costs.
Solana’s Dominance in MEV
For the first time, Solana’s validators earned more from MEV than Ethereum’s validators in 2024. This shift coincided with a significant increase in transaction fees on the Solana network, which nearly tripled from roughly 60,000 SOL per day in January to more than 150,000 in October, according to data from Dune Analytics.
As of December 26, over 93% of Solana validators use Jito’s software to maximize earnings from block-building, according to Jito Labs.
Jito’s Popularity and Restaking
Jito, which also issues the liquid restaking token (LRT) JitoSOL, has emerged as Solana’s most popular DeFi protocol, with nearly $2.75 billion in total value locked, according to DefiLlama.
Restaking is the process of utilizing a token that has already been staked to provide security for additional protocols at the same time. LRTs serve as a tradable entitlement to a collection of assets that have been restaked.
In October, the holders of Jito’s governance token, JTO, made a decision to allocate a share of tip revenues to those who restake JitoSOL. According to Kairos, Jito plans to route 0.15% of tip revenue to JitoSOL restakers, while validators will continue to receive the majority of income from tips.
The success of Jito’s staking pool highlights the growing popularity and profitability of the Solana network. With substantial monthly revenues from tips and a strong community of validators and restakers, Jito is well-positioned to continue its dominance in the DeFi space.
