Tezos has seen notable developments in its transaction fee revenue and user engagement, despite a decline in overall network activity. The rise in daily active addresses and the growth in Web3 gaming and NFT activity highlight a shift in user interaction with the platform.
Transaction Fee Revenue Growth
Tezos has experienced a significant increase in transaction fee revenue, with a 30.4% rise quarter-over-quarter, totaling 11,100 XTZ for the fourth quarter of 2024. This growth is particularly noteworthy when compared to Etherlink, Tezos’ first EVM-compatible smart roll-up, which saw an impressive 44% quarterly increase, reaching 6,669 XTZ.
Despite this revenue growth, overall network activity on Tezos has declined. There has been a 5% drop in monthly transactions and contract calls, averaging around 3.2 million during the same period. This trend reflects a broader industry shift towards Layer 2 solutions, which are increasingly preferred for their faster and more cost-effective transaction capabilities.
Increase in Daily Active Addresses
Interestingly, while total transactions have decreased, the daily active addresses (DAA) on the Tezos network have surged by 37% from the previous quarter, averaging 1,800 unique addresses per day. This increase in unique wallets indicates that although transaction volume is down, the user base is expanding.
This growth showcases a growing trend of adoption within the ecosystem. The rise in daily active addresses suggests that users are engaging with the network in new ways, potentially taking advantage of the benefits offered by Layer 2 solutions like Etherlink.
Web3 Gaming and NFT Activity
The fourth quarter of 2024 also saw a significant rise in Web3 gaming and NFT activity on the Tezos platform, largely fueled by the capabilities of Etherlink. This EVM Layer 2 solution provides rapid transaction finality and low fees, making it appealing to developers and users alike.
Notable advancements in the gaming sector include Rarible’s launch of the BattleRise Founder Pass, recognized as the first gaming NFT on Etherlink. This NFT offers in-game perks, staking rewards, and rental opportunities, enhancing the gaming experience for users.
- Sugarverse introduced Sugar Match, a match-3 puzzle game featuring tradable NFTs.
- Etherlink facilitated successful NFT drops, such as MDCL and Chapter 00, both of which sold out quickly.
The infrastructure provided by Etherlink allows developers to seamlessly deploy Ethereum-based smart contracts on Tezos. This contributes to a vibrant ecosystem that continues to attract new projects, with over 100 projects currently in development on Etherlink.
Decentralized Finance (DeFi) Developments
In the decentralized finance (DeFi) sector, Tezos has seen a 6% quarter-over-quarter increase in total value locked (TVL), closing at $53 million in USD terms. However, this growth is primarily due to the rising price of XTZ, as the TVL in XTZ terms has actually decreased by 37% compared to the previous quarter.
This discrepancy suggests a potential migration of liquidity from the Tezos Layer 1 to Layer 2 solutions, particularly Etherlink, which has seen its TVL surge past $1.5 million, nearly doubling from the third quarter levels.
- Youves, a decentralized synthetic assets application, has emerged as a leader in terms of TVL, boasting over $32 million, representing a 28% growth from the previous quarter.
- Sirius, a liquidity-baking protocol for XTZ/tzBTC, has a TVL of $9.8 million.
- Kord.Fi, another liquidity-baking platform, holds $5.91 million in TVL.
These developments indicate a dynamic and evolving DeFi landscape on Tezos. Users and developers are navigating the opportunities presented by both Layer 1 and Layer 2 solutions, which will be crucial in shaping the future trajectory of the Tezos ecosystem.
📎 Related coverage from: cryptopotato.com
