Competition between Level 1 (L1) smart contract platforms has grown over the past few months as traders and developers continue to use alternatives to the Ethereum (ETH) network that offer faster transaction times and lower fees.
According to a recent report by Delphi Digital, the price of Ether has remained relatively flat over the past month, while rivals such as Solana (SOL) and Fantom (FTM) have seen prices rise more than 200% over the same period.
Relative performance of L1 coins over the last 30 days. Source: Delphi Digital
One of the driving forces behind the events at Fantom (FTM), Avalanche (AVAX) and Terra (LUNA) is the fact that they each launched a series of multi-million dollar financing initiatives aimed at attracting developers, investors and new liquidity. Ecosystems.
These initiatives have sparked a wave of new activity and internetworking from the Ethereum network to tier 1 projects, and Solana has had the most success so far.
The total value of the US dollar is recorded in level 1 protocols. Source: Delphi Digital
In the case of individual apps located in different blocks, DeFi Trader Joe’s avalanche protocol saw the largest increase in TVL in the last seven days, as the value blocked by the protocol increased by 57%.
The total value recorded on Trader Joe’s, depending on the trading volume. Source: Token Terminal
Related Topics: Redefining Funding: Tier Two Growth and SEC Examination, 19–23. September
Second-tier platforms increase gas consumption
Ethereum’s tier 1 competitors are not alone in experiencing a slight increase in activity in recent months. The launch of several new Layer 2 solutions and releases through the dYdX Decentralized Derivative Exchange (DYDX) increased gas consumption with Layer 2 protocols.
Layer 2 gas flow rate versus layer 1 gas as a percentage of the total gas. Source: Delphi Digital
Delphi Digital data shows that the share of gas used by Tier 2 solutions now exceeds 1% after rising 2% in early September.
DYdX was one of the early adopters of Layer 2 technology through a partnership with Starkware, and in recent weeks, the protocol has seen a new level of activity following the September 8 release of the DYDX token to users who were previously using the protocol.