Messari: ETH liquidity market cap up 3% in Q2, other major L1s down 23% on average

Messari researcher Peter Horton tweeted that of the 16 L1 networks in the second quarter of 2023, ETH outperformed other major L1 tokens, with liquidity pledges improving, Cardano DeFi growing significantly, and the Avalanche C-Chain network seeing a surge in activity. In particular, ETH's liquid market capitalization grew by 3% in the second quarter, driven by Shapella, Memecoins, SEC and ETF filings, while the other major L1s declined by an average of 23%. Secondly, liquidity pledges across L1s are gradually increasing. By the end of Q2, Ether's liquidity pledge rate was over 50 percent (including cbETH), up 25 percent year-on-year, while other cottage L1s have some delegation mechanisms in place that reduce the reasons for liquidity pledges.

Cardano leads other L1s in quarterly growth rates of DeFi TVL, DEX transaction volume and stablecoin market capitalization, with new protocols Indigo, Liqwid and VyFinance driving growth, and Avalanche C-Chain's quarterly growth rates in transaction volume, active addresses, new addresses, and transaction fees outpacing those of mainstream L1s. LayerZero usage accounts for 45% to 60% of total C-Chain activity. Notably, LayerZero usage is high on Polygon, BNB Chain, Avalanche, but low on Ether, suggesting that airdrop farms are driving transaction activity. Many developers are still building on the core LayerZero technology and Stargate liquidity.