Tezos, a prominent player in the crypto world, reported a 30.4% quarter-on-quarter (QoQ) surge in transaction fee revenue, amassing approximately 11,100 XTZ in the fourth quarter of 2024. Concurrently, Etherlink, Tezos’ premier EVM-compatible smart roll-up, saw a faster growth of 44% QoQ, achieving 6,669 XTZ.
However, the overall transactional activity on Tezos witnessed a 5% decline during the same period, with average monthly transactions and contract calls hovering around 3.2 million. As per a recent report by Messari, this drop aligns with the current trend of users migrating to Layer 2 solutions such as Etherlink, which provides speedy and cost-effective transactions, reinforcing Tezos’ scalability plan.
Interestingly, while the total number of transactions reduced, there was a 37% rise in daily active addresses (DAA) from the previous quarter, averaging 1,800 distinct addresses per day. This rise in unique wallets indicates that despite a decrease in transaction volume, Tezos’ user base is still growing, suggesting an overall growth in adoption.
The fourth quarter of 2024 saw a significant increase in Web3 gaming and NFT activity on Tezos, propelled by Etherlink, an EVM Layer 2 that provides quick transaction finality and low fees. The gaming industry flourished with major integrations such as the launch of BattleRise Founder Pass by Rarible, the first gaming NFT on Etherlink.
Further, Etherlink experienced successful NFT drops like MDCL and Chapter 00, both of which sold out rapidly. Etherlink’s gaming-centric infrastructure allows developers to deploy Ethereum-based smart contracts smoothly on Tezos. With high throughput and cost efficiency, the ecosystem continues to lure new projects. Presently, over 100 projects are under development on Etherlink, cementing its status as a top choice for Web3 gaming, NFT marketplaces, and blockchain-powered digital experiences.
On the DeFi side, the total value locked (TVL) in USD grew by 6% QoQ in Q4 2024, ending at $53 million. However, this growth was primarily due to XTZ’s increasing price, as TVL in XTZ terms actually decreased by 37% compared to the previous quarter. Simultaneously, Etherlink’s TVL soared past $1.5 million, nearly doubling from Q3 levels. This implies that liquidity is moving from Tezos to Etherlink amid the rising adoption of Layer 2 solutions.
