Research Summary
- The report focuses on the blockchains (L1) market sector, emphasizing smart contract execution environments that allow for the creation of smart contract-based businesses or DAOs.
- Blockchains provide a globally accessible infrastructure for economic coordination, generating revenue primarily from transaction fees.
- Blockchain usage has shifted towards smart contract platforms like Ethereum, moving away from store-of-value platforms like Bitcoin.
- The blockchains (L1) dashboard analyzed 33 projects, indicating an uptrend in fees year-to-date, with Ethereum and Tron leading in fees generated.
- Solana has seen positive growth in both price and fees, attracting new developmental activity and hosting notable protocols.
- LayerZero, an interchain communication protocol, is a top gas consumer on several EVM blockchains, driven partly by speculation of a token airdrop.
- Avalanche and Gnosis Chain have experienced significant growth in transaction counts, driven by dapps like LayerZero, Trader Joe, and Zerion.
- Several blockchains, including Avalanche, Filecoin, Gnosis Chain, NEAR Protocol, and Tezos, have introduced new initiatives, upgrades, and partnerships.
Actionable Insights
- Investment Opportunities: Consider evaluating Ethereum, Tron, and Solana for potential investment opportunities given their strong performance in fee generation and developmental activity.
- Development Potential: Solana’s introduction of Solang, allowing for Solidity-based smart contract development, may attract more dapp developers.
- Interchain Communication: Monitor the growth and adoption of LayerZero, especially on EVM blockchains, as it plays a crucial role in interchain communication and dapp ecosystem development.
- Blockchain Upgrades: Stay updated with the latest upgrades and developments on blockchains like Tezos, NEAR Protocol, and Gnosis Chain, as these can impact network performance and user adoption.
- Dapp Ecosystem: Focus on blockchains with a growing dapp ecosystem, as they tend to be more profitable and sustainable in the long run.
