Layer-one (L1) solutions witnessed consistent growth in recent months as traders and developers continue to adopt Ethereum (ETH) network alternatives that provide quicker transaction speeds and reduced costs.
According to a recent Delphi Digital study, the price of Ether has stayed relatively constant over the last month, while competitors such as Solana (SOL) and Fantom (FTM) have had their prices increase by more than 200% during the same period.
One of the reasons for the rallies observed in Fantom (FTM), Avalanche (AVAX), and Terra (LUNA) is that each has announced several multi-million dollar financing campaigns aimed at attracting developers, investors, and fresh liquidity to their ecosystems.
Solana has experienced the greatest growth in TVL over the last seven days, with value locked on the protocol increasing by 57%.
The TVL value of the Avalanche-based Trader Joe DeFi protocol has likewise increased by 57% in the previous week or so.
Not only have Ethereum's layer-one competitors witnessed an increase in activity in the last few months.
The introduction of numerous new layer-two solutions, as well as an airdrop by the decentralized derivatives exchange dYdX (DYDX), have resulted in an increase in gas consumption by layer-two protocols.
According to Delphi Digital data, the percentage of gas consumed by layer-two solutions is currently above 1%, after reaching as high as 2% in early September.
Thanks to a collaboration with Starkware, the DYdX protocol was one of the early adopters of layer-two technology, and the protocol has seen a new level of activity in recent weeks following the release of its DYDX governance token, which was airdropped on Sept. 8 to users who had previously used the protocol.
Since the airdrop's introduction, the TVL locked on the dYdX has risen from $422 million to $554 million, and its 24-hour training volume has risen from $700 million to as much as $2.4 billion.