<\/p>\n
Tezos Layer 1 saw a 30.4% quarter-over-quarter (QoQ) rise in transaction fee revenue, reaching 11,100 XTZ in Q4 2024. Meanwhile, Etherlink, Tezos\u2019 first EVM-compatible smart roll-up, grew even faster, with a 44% quarterly increase, hitting 6,669 XTZ.<\/p>\n
Despite this, the overall network activity on Tezos dropped by 5% during the same period, with monthly transactions and contract calls averaging 3.2 million.<\/p>\n
According to Messari\u2019s latest report<\/a>, this decline is consistent with the ongoing shift toward Layer 2 solutions like Etherlink, which offers faster, lower-cost transactions to support Tezos\u2019 scaling strategy. While total transactions were less, the daily active addresses (DAA), however, rose by 37% from the previous quarter, averaging 1,800 unique addresses per day.<\/p>\n This increase in unique wallets suggests that while transaction volume decreased, the network\u2019s user base continues to grow, reflecting a broader adoption trend.<\/p>\n Q4 2024 saw a major boost in Web3 gaming and NFT activity on Tezos, driven by Etherlink, an EVM Layer 2 offering fast transaction finality and low fees. The gaming sector thrived with key integrations, such as Rarible\u2019s launch of the BattleRise Founder Pass, the first gaming NFT on Etherlink.<\/p>\n This pass granted in-game perks, staking rewards, and rental opportunities. Sugarverse further expanded the gaming scene with Sugar Match, a match-3 puzzle game featuring tradable NFTs.<\/p>\n Additionally, Etherlink saw successful NFT drops like MDCL and Chapter 00, both selling out quickly. Etherlink\u2019s gaming-friendly infrastructure enables developers to deploy Ethereum-based smart contracts seamlessly on Tezos. With high throughput and cost efficiency, the ecosystem continues to attract new projects.<\/p>\n Currently, over 100 projects are developing on Etherlink, solidifying its position as a prime destination for Web3 gaming, NFT marketplaces, and blockchain-powered digital experiences.<\/p>\n The total value locked (TVL) in USD rose by 6% QoQ in Q4 2024, closing at $53 million. However, this growth stemmed from XTZ\u2019s rising<\/a> price, as TVL in XTZ terms actually fell by 37% compared to last quarter. At the same time, Etherlink\u2019s TVL surged past $1.5 million, nearly doubling from Q3 levels. This suggests that liquidity is migrating from Tezos to Etherlink amidst a growing adoption of Layer 2 solutions.<\/p>\n Youves, a decentralized synthetic assets application, topped in terms of TVL among Tezos protocols and holds over $32 million, which marked a 28% growth from Q3. Sirius, an XTZ\/tzBTC liquidity-baking protocol, ranked second with $9.8 million, followed by Kord.Fi, another liquidity-baking platform, with $5.91 million in TVL.<\/p>\nWeb 3 And NFT on Tezos<\/h2>\n
DeFi on Tezos Expands<\/h2>\n
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