In the last few months, the competition between layer-one (L1) smart contracts platforms has increased as developers and traders continue to embrace Ethereum network alternatives that offer lower transaction fees and faster transaction times.
A Delphi Digital report recently stated that Ether’s price has remained fairly flat in the last month, while prices of Ether competitors such as Fantom (FTM), and Solana (SOL), have seen them rise more than 200%.
The relative performance of L1 tokens in the last 30 days. Source: Delphi Digital
Fantom (FTM), Terra (LUNA), and Avalanche(AVAXX) are all driven by the fact that each of them has launched a range of multi-million dollar funding programs designed to attract investors, developers, and new liquidity into their ecosystems.
These initiatives have sparked a frenzy of activity and cross-chain transfers between the Ethereum network and the layer-1 projects. Solana has seen the greatest gains to date.
The top-level protocols have a total USD value. Source: Delphi Digital
The Avalanche-based protocol Trader Joe DeFi has seen the greatest increase in TVL in the last seven days, as its value has increased by 57%.
Total value locked on Trader Joe vs. exchange trading volume. Source: Token Terminal
Related: Finance Redefined: Layer two growth and the SEC’s scrutiny Sept. 19-23
Layer-2 platforms have a higher gas consumption
Not just Ethereum’s competitors at layer one have seen an increase in activity over the past few months. A number of new layer-two solutions have been launched and an airdrop from the decentralized derivatives exchange, DYDX (DYDX), has led to an increase gas consumption by layer two protocols.
As a percentage of total gasoline, Layer-two and Layer-one gas spending are different. Source: Delphi Digital
Delphi Digital data shows that layer-two solutions now use more than 1% of the gas after spikes as high as 2% in September.
Starkware collaborated with DYdX to make layer-two technology more accessible to them. The protocol has seen a surge in activity since the release of its DYDX governance token, which was distributed to all users who have used it before.
Total value locked on dYdX vs. trading volume. Source: Token Terminal
The TVL has been able to lock on the dYdX for $422 million to $554 millions, and the TVL’s 24-hour training volume has risen from $700 million up to $2.4 billion since the airdrop release.
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