Competition between Layer 1 smart contract platforms has intensified in recent months, with investors and developers turning to Ethereum alternatives that offer faster transaction times and lower fees.
According to the latest Delphi Digital report, the price of Ether (ETH) moved relatively flat last month, while the price of competitors such as Solana (SOL) and Phantom (FTM) increased by 200 percent in the same period.
The millionaire financing initiatives of Fantom (FTM), Avalanche (AVAX) and Terra (LUNA) to attract developers, investors and liquidity to their ecosystems are one of the main reasons for the rebound in their prices.
These initiatives resulted in a change of activity and assets from the Ethereum network to layer 1 projects, with Solana being the most profitable so far.
When it comes to individual applications on different blockchains, the Avalanche Trader Joe-based DeFi protocol has seen the largest increase in locked value in the last seven days. The value of the assets enclosed in the protocol increased by 57 percent during the period in question.
Increased gas consumption of Layer 2 platforms
It’s not just Ethereum’s Layer 1 competitors that have seen an increase in activity in recent months. The launch of new Layer 2 solutions and the airdrop using the decentralized derivative exchange dYdX (DYDX) led to an increase in gas consumption of Layer 2 protocols.
Data from Delphi Digital reveals that the share of gas used by layer 2 solutions in total gas consumption increased to 2 percent in early September and then decreased to around 1 percent.
The DYdX protocol was one of the first to use Layer 2 technology, thanks to its collaboration with StarkWare. The protocol saw a new level of activity following the air launch of the DYDX governance token on September 8.
The total value locked in dYdX from Aidrop has increased from $ 422 million to $ 554 million. The platform’s daily trading volume, which was $ 700 million, saw $ 2.4 billion.