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Tezos revenue rises 30% while Layer 1 activity declines 5%

Tezos revenue rises 30% while Layer 1 activity declines 5%

GrafaGrafa2025/02/03 05:40
By:Liezl Gambe

Tezos (CRYPTO:XTZ) has reported a notable increase in transaction fee revenue, rising by 30.4% quarter-over-quarter to reach 11,100 XTZ in Q4 2024.

However, this revenue growth contrasts with a 5% decline in overall network activity during the same period.

Monthly transactions and contract calls averaged around 3.2 million, indicating a shift in user engagement towards Layer 2 solutions like Etherlink.

Etherlink, Tezos’ first EVM-compatible smart roll-up, experienced even more significant growth, with a quarterly increase of 44%, reaching 6,669 XTZ.

Despite the decrease in total transactions, the number of daily active addresses rose by 37%, averaging about 1,800 unique addresses per day.

This suggests that while fewer transactions are occurring, the user base is expanding, reflecting broader adoption trends within the ecosystem.

The fourth quarter of 2024 also saw a surge in Web3 gaming and NFT activities on Tezos, largely driven by Etherlink's infrastructure.

Key integrations included Rarible’s launch of the BattleRise Founder Pass, which provided in-game perks and staking rewards.

Additionally, successful NFT drops like MDCL and Chapter 00 quickly sold out, showcasing Etherlink’s appeal to developers looking for fast transaction finality and low fees.

Currently, over 100 projects are being developed on Etherlink, solidifying its status as a key player in the Web3 gaming and NFT marketplace.

In terms of DeFi, the total value locked (TVL) increased by 6% to $53 million in USD terms but fell by 37% when measured in XTZ due to fluctuations in token prices.

Etherlink’s TVL surged past $1.5 million, suggesting liquidity is migrating from Tezos’ Layer 1 to its Layer 2 solutions.

Youves emerged as the leading protocol with over $32 million in TVL, marking a 28% increase from the previous quarter.

At the time of reporting, the Tezos (XTZ) price was $0.8568.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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