Ethereum’s Alternatives and L1 solutions show steady growth in September
Competition between Level 1 (L1) smart contract platforms has increased recently as traders and developers continue to use alternative Ethereum (ETH) networks that offer faster transactions and lower fees.
According to a recent report from Delphi Digital, Ethereum’s price has remained roughly unchanged over the past month, while Solana (SOL) and Fantom (FTM) are up more than 200% in the same time.
Part of the reason for the striking growth of Fantom (FTM), Avalanche (AVAX) and Terra (LUNA) is that they each launched a series of multi-million dollar financing initiatives aimed at attracting developers, investors and increasing the liquidity for their ecosystems.
These initiatives have sparked a wave of new activity and cross-chain transfers from the Ethereum network to L1 projects, and Solana has surpassed all competitors to date.
Additionally, the Avalanche-based Trader Joe DeFi protocol saw the largest gain in TVL over the past seven days, as the value locked by the protocol increased by 57%.
In the past few months, there has been a surge in activity not only from competitors of the first level of Ethereum. The launch of several new L2 solutions and the activity on the dYdX exchange have led to an increase in gas consumption by L2 protocols.
Delphi Digital data shows that after a jump to 2% in September, the share of gas used by second-tier solutions is now over 1%.