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ETH is stagnating, while layer-1 competitors are gaining profits even during the correction

2 min read

 

ETH is not catching up to the competition.  Source: Shutterstock.com/Things
Source: Shutterstock.com/Things

ETH does not seem to be catching up competition among Layer 1 (L1) smart contracting platforms, which has been growing in recent months. Merchants and developers continue to take advantage of the Ethereum network alternatives, which offer faster transaction times and lower fees.

Is ETH lagging behind?

According to a recent report from Delphi Digital, the price of ETH has remained relative over the last month equal. Competitors such as Solana (SOL) and Fantom (FTM) saw price increases of more than 200% at the same time.

Relative performance of layer1 projects in 30 days.  Source: Delphi Digital
Relative performance of layer1 projects in 30 days. Source: Delphi Digital

One of the driving forces behind cryptocurrencies such as Phantom (FTM), Avalanche (AVAX) and Terra (LUNA) is the fact that each has launched a number of multi-million dollar funding initiatives. The aim is to attract developers, investors and new liquidity to their ecosystems.

These initiatives have provoked influx of new activities and inter-chain transfers from the ETH network to Layer 1 projects. Solana has made the biggest gains so far.

The total amount of USD locked in the top layer1 projects.  Source: Delphi Digital
The total amount of USD locked in the top layer1 projects. Source: Delphi Digital

In terms of individual applications located on different blockchains, the Avalanche-based Trader Joe DeFi protocol recorded the largest increase in terms of TVL over the last seven days, as the value locked in the protocol has increased by 57%.

TVL and volume on Trader Joe.  Source: Token Terminal
TVL and volume on Trader Joe. Source: Token Terminal

Layer 2 platforms increase their gas consumption

Not just competitors Layer 1, has seen an increase in activity in recent months. The launch of several new Layer 2 solutions has led to increased gas consumption.

Gas consumption layer1 and layer2.  Source: Delphi Digital
Gas consumption layer1 and layer2. Source: Delphi Digital

Delphi Digital data shows that the percentage of gas used in Layer 2 solutions is now higher than 1% after the increase, and up to 2% in early September.

DYdX was one of the first users of Layer 2 technology to partner with Starkware. This protocol has been recorded in recent weeks a new level of activity after issuing your DYDX token.

TVL and volume on dydX.  Source: Token Terminal
TVL and volume on dydX. Source: Token Terminal

From airdrop, TVL to dYdX rose from $ 422 million to $ 554 million. Its 24-hour volume has climbed from $ 700 million to $ 2.4 billion.

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