Tezos Sees Surge in Revenue Despite Network Slowdown

Tezos’ Layer 1 ecosystem has notably increased transaction fee revenue. Its revenue rose by 30.4% quarter-over-quarter (QoQ) to 11,100 XTZ in Q4 2024. However, the real star of the quarter was Etherlink, Tezos’ first EVM-compatible smart roll-up. This scaling solution grew by an even larger 44%, hitting 6,669 XTZ. This sharp growth highlights the increasing adoption of Layer 2 solutions within the Tezos ecosystem. Tezos Network Activity Declines, but Unique Addresses Rise Despite the boost in fee revenue, overall network activity on Tezos dipped by 5% in Q4. Monthly transactions and contract calls averaged 3.2 million, reflecting a slowdown in Layer 1 usage. However, this decline aligns with a broader shift towards Layer 2 solutions like Etherlink, which offers faster transactions at lower costs. Interestingly, daily active addresses (DAA) on Tezos surged by 37%, reaching an average of 1,800 unique wallets daily. This suggests that despite declining overall transaction volume, user engagement with the network is increasing. This is a positive sign for Tezos’ adoption and long-term growth. Web3 Gaming and NFTs Fuel Etherlink’s Momentum Q4 2024 marked a breakthrough for Web3 gaming and Non-Fungible Tokens (NFTs) on Tezos, with Etherlink playing a pivotal role. The ecosystem saw activity driven by key gaming integrations and NFT releases. One of the most significant was the launch of the BattleRise Founder Pass by Rarible, the first gaming NFT on Etherlink. This pass granted in-game benefits, staking rewards, and rental opportunities, setting a precedent for future gaming assets on the network. Sugarverse also expanded the gaming landscape with Sugar Match, a match-3 puzzle game featuring tradable NFTs. Etherlink’s NFT ecosystem also flourished with sold-out collections like MDCL and Chapter 00. This further proved the platform’s appeal to digital artists and collectors. Etherlink’s ability to seamlessly integrate Ethereum-based smart contracts into Tezos has positioned it as a prime destination for gaming and NFT projects. With high transaction throughput and cost-efficient operations, developers continue to migrate towards this Layer 2 solution. Liquidity Shifts Toward Layer 2 Solutions The Total Value Locked (TVL) in USD within the Tezos ecosystem grew by 6% QoQ in Q4 2024, closing at $53 million. However, this increase was primarily due to XTZ’s rising price. Normally, TVL in XTZ terms dropped by 37% compared to the previous quarter. Meanwhile, Etherlink’s TVL surged past $1.5 million, nearly doubling from Q3. This indicates a migration of liquidity from Tezos’ main chain to its Layer 2 solution. Among Tezos’ top decentralized finance (DeFi) platforms, Youves maintained its position as the leading decentralized synthetic assets application. It raked in over $32 million in TVL, a 28% increase from Q3. Additionally, Sirius, an XTZ/tzBTC liquidity-baking protocol, ranked second with $9.8 million, while Kord.Fi followed with $5.91 million. The post Tezos Sees Surge in Revenue Despite Network Slowdown appeared first on TheCoinrise.com .