The community is tired of the gloomy market. However, this is also an opportunity for you to discover more about the 5 sectors of the blockchain ecosystem during the crypto winter.
Layer-1 (L1) protocols like Bitcoin (BTC) and Ethereum (ETH) form the foundation that much of the cryptocurrency ecosystem is built upon and enable most of the other sectors of the market to exist.
That being said, currently, there are not many options available for launching other protocols on the Bitcoin network and Ethereum has well-known limitations in terms of scalability, which can lead to high transaction costs and slow processing times.
Due to these factors, there remains a significant opportunity for other L1 protocols to establish themselves and carve out a good slice of market share. The total revenue generated by a protocol is one metric that can be used to determine which networks see the most usage.
According to data from Token Terminal, the top five L1 protocols in terms of total revenue over the past 180 days, excluding Bitcoin and Ethereum, are BNB Smart Chain (BNB), Avalanche (AVAX), Helium (HNT), Fantom (FTM) and Solana (SOL).
As mentioned above, the Ethereum network has limitations in terms of scalability that won’t be solved during the upcoming Merge, leaving an opening for layer-2 protocols to fill the need by helping to reduce the activity that occurs directly on the Ethereum blockchain.
According to L2Beat, which tracks the stats on the top Ethereum L2s, Arbitrum is ranked number one in terms of total value locked (TVL), followed by Optimism and dYdX.
One network that was curiously left off the list provided by L2Beat, but remains the most highly adopted L2 in terms of active wallets and protocols launched is Polygon (MATIC), which currently has a TVL of $1.59 billion, according to data from DefiLlama.
As for the Bitcoin network, the main L2 solution that is currently seeing increased inflows is the Lightning network, but there is no token involved with the protocol. Instead, users can opt to run a node if they want to support the network as well as earn passive income.
Above is my share about 2 out of 5 sectors, please follow the next reading.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
CoinCu News
Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…
Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…
VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…
President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.
Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…
BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…
This website uses cookies.