Ethereum and Layer 1 alternatives are growing strongly in September
Competition between Layer 1 smart contract platforms has intensified in recent months as merchants and developers continue to deploy an alternative to the Ethereum network that offers faster transaction times and lower fees.
According to a recent report from Delphi Digital, the price of ether has remained relatively stable over the past month, while competitors such as Solana (SOL) and Fantom (FTM) saw over 200% growth over the same period.
Relative performance of Layer 1 tokens over the past 30 days | Source: Delphi Digital
One of the reasons behind the protests in Fantom (FTM), Avalanche (AVAX) and Terra (LUNA) was the launch of a series of multi-million dollar incentive programs designed to attract new developers, investors and liquidity to ecosystems.
These initiatives have sparked a spate of new activity and cross-chain money transfers from the Ethereum network to Layer 1 projects, and Solana has made the biggest profit by far.
Total value locked in layer 1 protocols | Source: Delphi Digital
When it comes to individual applications residing on different blockchains, the Avalanche-based Trader Joe DeFi Protocol has seen the largest increase in Total Value Locked (TVL) in the past seven days, as the value of the protocol has increased 57% is.
Total locked value of Trader Joe compared to trading volume on the exchange | Source: Token Terminal
Layer 2 platform increases gas consumption
It’s not just Ethereum’s Layer 1 competitors that have seen an increase in activity over the past few months. The introduction of several new Layer 2 solutions and an airdrop of the dYdX exchange (DYDX) have led to an increase in the gas consumption of Layer 2 protocols.
Gas consumption of Layer 2 protocols vs. Layer 1 as a percentage of the total gas | Source: Delphi Digital
Data from Delphi Digital shows that the gas content of Layer 2 solutions is now above 1% after increasing to 2% in early September.
Thanks to its partnership with Starkware, DYdX was one of the first to adopt Layer 2 technology and, in the last few weeks, after an airdrop of the DYDX Governance Token on September 8th for users using the protocol.
Total blocked value on dYdX compared to trading volume | Source: Token Terminal
Since the airdrop, TVL on dYdX has grown from $ 422 million to $ 554 million, and its 24-hour trading volume has increased from $ 700 million to $ 2.4 billion.
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According to Cointelegraph