The tough competition between the L1 smart contract platforms over the past several months can be attributed to the continued acceptance by traders and developers of alternatives to the Ethereum(ETH) network; that provide lower prices along with rapid transaction times.
As per a report by Delphi Digital (a research platform in the digital asset market), the price of Ether has seen little change over the past month. Meanwhile, its competitors such as Solana and Fantom witnessed whooping growth of more than 200% during the same period.
The cut-throat competition between FTM, AVAX and LUNA is because each of them has undertaken numerous funding steps that involve multi-million investment. These have been curated in such a way so that new developers and investors find them lucrative to invest in.
These initiatives resulted in several new activities as well as transfers of a cross-chain type from the Ethereum network to the L1 projects. As of now, Solana has made the largest profits.
In terms of individual underlying blockchain applications, a trader that uses DeFi protocol (Avalanche blockchain) has made the largest profit if we talk about Total Value Locked (TVL) over the past week. The protocol’s TVL has risen by 57 %.
A boost in activities over the past few months has not just been limited to the layer- one competitor of Ethereum. The DYDX has set up several novel layers that includes two solutions with an airdrop. As a result, the protocols related to layer-2 gas consumption have increased. As per the data provided by Delphi Digital, after going as high as 2 % at the beginning of September, the amount of gas utilised by layer-2 solutions now stands at somewhere above 1%
Owing to the collaboration with Starkware, DYdX emerged as one of the first entities to implement layer-2 technology. The protocol has witnessed a never-before activity level in recent weeks. This was because of the launch of its DYDX governance token. These were airdropped to the users. The TVL is locked on dydX. Moreover, the 1-day trading volume has exponentially increased since the airdrop release.
