Research Summary
The report provides a comprehensive analysis of the performance of Layer-1 (L1) smart-contract platforms in Q1 2023. Despite an average QoQ increase of 83% in market cap, network usage decreased by around 2.5%. Stacks outperformed its peers in several metrics, driven by the popularity of Bitcoin Ordinals. Ethereum remained the leader in most key financial and ecosystem metrics including market cap, revenue, DeFi TVL and volume, NFT volume, and full-time developers. The report also highlights the shift in stablecoin dominance toward USDT, benefiting TRON.
Actionable Insights
- Monitor Stacks: Stacks led featured L1s in QoQ growth in market cap, revenue, network usage, DeFi TVL, and DEX volume. This growth was driven by the popularity of Bitcoin Ordinals which renewed interest in Bitcoin programmability.
- Keep an eye on Ethereum: Despite the competition, Ethereum remained the leader in most key financial and ecosystem metrics. It’s important to monitor its performance and the strategies it employs to maintain its dominance.
- Consider the impact of stablecoins: The report highlights a shift in stablecoin dominance toward USDT, benefiting TRON. This shift could have implications for other L1 platforms and their strategies around stablecoins.
