Jito Staking Pool on Solana Surpasses $100 Million in Monthly Tips: Kairos Research

Jito Staking Pool on Solana Surpasses $100 Million in Monthly Tips: Kairos Research

Solana's Jito staking pool has recently achieved a significant milestone, surpassing $100 million in monthly revenues from priority fees and tips during November and December. This surge in earnings highlights the growing popularity of the Solana network and the rising importance of validators using Jito's software to maximize Maximum Extractable Value (MEV).


According to a December 26 report from Kairos Research, Jito’s validators have increased their monthly tip revenues by an average of 32% in 2024. In November alone, the staking pool reached a peak of approximately $210 million in revenue. This impressive growth mirrors the growing traction of the Solana network and signals a shift in how validators earn on the platform.


The Role of MEV in Jito's Success

At the heart of Jito's success is MEV, a practice where validators prioritize certain transactions over others to maximize earnings. MEV allows users to pay validators tips to prioritize the execution of their transactions, ensuring they are processed in the desired order and with minimal delay. While this provides a better user experience, it also contributes to higher transaction costs.


In 2024, Solana's validators earned more from MEV than their Ethereum counterparts for the first time, signaling a shift in the landscape of blockchain transaction fees. This coincided with Solana’s daily transaction fees nearly tripling, from roughly 60,000 SOL in January to more than 150,000 SOL by October, according to data from Dune Analytics.


As of December 26, more than 93% of Solana’s validators use Jito’s software to maximize their earnings from block building, as reported by Jito Labs, the developer behind the platform. This widespread adoption underlines Jito's growing dominance within Solana’s validator ecosystem.


Jito’s Liquid Restaking Token (LRT) and Growing DeFi Presence

Jito has also emerged as one of Solana’s most popular decentralized finance (DeFi) protocols. It currently boasts nearly $2.75 billion in total value locked (TVL), according to data from DefiLlama. One of the key innovations driving Jito's success is its liquid restaking token (LRT), JitoSOL. Restaking allows tokens that have already been staked to be used simultaneously across multiple protocols, maximizing their utility and generating additional rewards.


JitoSOL holders can earn yields by participating in this restaking process. In October, holders of Jito’s governance token, JTO, voted to distribute a portion of the tip revenues to JitoSOL restakers, which will provide additional incentives to those staking JitoSOL. Kairos Research estimates that Jito will allocate 0.15% of tip revenue to JitoSOL restakers, although validators will continue to retain the majority of the income from tips.


Currently, Jito offers yields of approximately 8.6% for JitoSOL restakers, further incentivizing participation in the network. While Ethereum remains the leader in staking and restaking TVL, with top protocol EigenLayer commanding nearly $15 billion, Solana's rise through Jito’s platform demonstrates the increasing importance of restaking and its potential to reshape the staking landscape across multiple blockchains.


Conclusion

Jito’s exponential growth in monthly tip revenues underscores the expanding influence of Solana's ecosystem and its shift toward maximizing validator earnings through MEV. With widespread adoption among Solana’s validators and innovative DeFi protocols like JitoSOL restaking, Solana continues to carve a path toward becoming a dominant force in the blockchain staking landscape. As Jito evolves, its ability to provide decentralized and liquid staking solutions is likely to continue attracting both users and validators, further solidifying its position as a leading protocol on Solana.

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