Blockchain

The data shows the parabolic growth of DeFi and DEX platforms based on layer 2

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In the increasingly fierce competition between blockchain technology and cryptocurrency, any project that hopes to achieve long-term success in the ecosystem requires protocol innovation and the ability to solve the biggest problems facing the crypto community.

Recently, the emergence of layer 2 technologies like bridges between Arbitrum, Optimism, and Avalanche ecosystems is revolutionizing the way investors, builders, and developers interact with various protocols, because each protocol promotes fast and low cost The transaction, thereby improving the foundation of decentralized finance (DeFi) ecosystem, but also making it easier for retail investors to take advantage of opportunities.

according to data From the perspective of Token Terminal, DeFi is still one of the fastest growing sectors in the crypto economy, as evidenced by the increase in the total value (TVL) locked in the agreement. Some of the biggest gains last week occurred in cross-chain compatible networks and second-tier protocols that provide a lower-cost environment.

Lock in weekly gains for the top 6 in total value.Source: Token Terminal

The top 6 projects in the above list, Trader Joe and Pangolin, are located in the Avalanche network, since Launched an upgraded cross-chain bridge This allows Ethereum-based tokens and applications to migrate to the Avalanche ecosystem.

The total value locked on Avalanche. Source: Defi Llama

Governance functions are also a positive factor to help stimulate new growth in the project, as Alchemix Finance and Rari Capital are conducting or recently completed voting aimed at improving the ecosystem and increasing community participation.

related: Bitcoin is great, but the real crypto innovation has moved elsewhere

Tier 1 projects and decentralized leveraged trading flourish

Another emerging trend shown in Token Terminal data is that as regulators increasingly crack down on centralized exchanges that provide derivatives services and have loose KYC and AML requirements, the strength of derivatives and options trading agreements continues to increase.

The top 6 weekly beneficiaries of agreement income.Source: Token Terminal

As shown in the figure above, the two biggest winners of agreement revenue in the past week are dYdX and Hegic, which are a pair of agreements that provide investors with decentralized derivatives and on-chain options trading.

In recent months, global regulators have intensified their scrutiny of leveraged and derivatives trading platforms. At the same time, mature exchanges like Coinbase have also Apply for the provision of futures trading services, Indicating that as cryptocurrencies become more mainstream, this is an industry that is expected to continue to grow.

dYdX also benefits from the fact that it runs on a second-tier solution jointly developed with StarkWare, which supports cross-margin perpetual contracts with zero gas costs and the lowest transaction fees.

The data shows that Ethereum competitors such as Tezos (XTZ) and Cosmos (ATOM) have seen revenue growth in the past week, which shows that as the high fees of the Ethereum network continue to incentivize users, the battle on the first layer is heating up. Other options.

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