Tezos Sees Rising Revenue but Declining Activity as Users Shift to Layer 2

Tezos Layer 1 noticed a 30.4% quarter-over-quarter (QoQ) rise in transaction charge income, reaching 11,100 XTZ in This autumn 2024. In the meantime, Etherlink, Tezos’ first EVM-compatible sensible roll-up, grew even sooner, with a 44% quarterly enhance, hitting 6,669 XTZ.

Regardless of this, the general community exercise on Tezos dropped by 5% throughout the identical interval, with month-to-month transactions and contract calls averaging 3.2 million.

In line with Messari’s newest report, this decline is per the continued shift towards Layer 2 options like Etherlink, which provides sooner, lower-cost transactions to help Tezos’ scaling technique. Whereas complete transactions have been much less, the day by day energetic addresses (DAA), nonetheless, rose by 37% from the earlier quarter, averaging 1,800 distinctive addresses per day.

This enhance in distinctive wallets means that whereas transaction quantity decreased, the community’s consumer base continues to develop, reflecting a broader adoption pattern.

Internet 3 And NFT on Tezos

This autumn 2024 noticed a significant increase in Web3 gaming and NFT exercise on Tezos, pushed by Etherlink, an EVM Layer 2 providing quick transaction finality and low charges. The gaming sector thrived with key integrations, resembling Rarible’s launch of the BattleRise Founder Go, the primary gaming NFT on Etherlink.

This go granted in-game perks, staking rewards, and rental alternatives. Sugarverse additional expanded the gaming scene with Sugar Match, a match-3 puzzle sport that includes tradable NFTs.

Moreover, Etherlink noticed profitable NFT drops like MDCL and Chapter 00, each promoting out shortly. Etherlink’s gaming-friendly infrastructure permits builders to deploy Ethereum-based sensible contracts seamlessly on Tezos. With excessive throughput and value effectivity, the ecosystem continues to draw new tasks.

At present, over 100 tasks are growing on Etherlink, solidifying its place as a main vacation spot for Web3 gaming, NFT marketplaces, and blockchain-powered digital experiences.

DeFi on Tezos Expands

The overall worth locked (TVL) in USD rose by 6% QoQ in This autumn 2024, closing at $53 million. Nevertheless, this progress stemmed from XTZ’s rising worth, as TVL in XTZ phrases truly fell by 37% in comparison with final quarter. On the identical time, Etherlink’s TVL surged previous $1.5 million, almost doubling from Q3 ranges. This implies that liquidity is migrating from Tezos to Etherlink amidst a rising adoption of Layer 2 options.

Youves, a decentralized artificial belongings software, topped when it comes to TVL amongst Tezos protocols and holds over $32 million, which marked a 28% progress from Q3. Sirius, an XTZ/tzBTC liquidity-baking protocol, ranked second with $9.8 million, adopted by Kord.Fi, one other liquidity-baking platform, with $5.91 million in TVL.