In the past 30 days, Layer 1 blockchains have seen an impressive acceleration of activity.
Infrastructure developments, DeFi (decentralized finance) innovations, and real-world asset (RWA) integrations have all focused on Layer 1 in recent weeks. These three major avenues of development are now leading an influx of new capital into Layer 1. The past few weeks have also seen skyrocketing activity and growth across Layer 1 ecosystems.
Solana Leads Wallet Activity, Newcomers Rise Fast
With regard to active wallets on a daily basis, Solana is far ahead of the pack with an almost unbelievable 106 million daily active users. This number crushes not just the competition in terms of Layer 1 networks but also a lot of projects in the crypto space in general, outside of Bitcoin. Uniswap DAO was not on that 106 million number in terms of counted active daily wallets because it is not in the top pancake of projects counted in the ecosystem. Ethereum, meanwhile, is under a lot of pressure, apparently, to come up with some decent solutions to its deferred scaling plans.
At the same time, Monad, another new entry in the Layer 1 race, has displayed notable growth, with 56,000 new wallets being made each day. Although the new wallets’ total is still modest when considered in terms of sheer numbers, the swift uptick in creation serves as a sign of possible demand for high-speed, high-volume alternatives to traditional Layer 1 blockchains.
User adoption across L1 ecosystems is growing, and it’s not just established platforms that are bringing in users. A lot of different well-known and lesser-known platforms are achieving significant user adoption, and the user adoption numbers for some of these platforms are quite impressive. That bodes well for the L1 ecosystem.
Transaction Volume: Stablecoins Lead the Charge
One of the most dependable indicators of real-world utility in blockchain systems remains stablecoins, and Tron is by far the jury-rigged leader in this category. During the last month alone, Tron has enabled USDT transactions across an incredible 340 million wallets—pushing it far and ahead of rivals like BNB Chain.
At the same time, the USDC that Circle issues is establishing its most active presence on Polygon, where it is serving as a crucial payment and settlement layer in DeFi and real-world use cases alike. Polygon’s low transaction fees and high-speed processing make it a perfect environment for applications based on USDC, especially those in gaming, remittances, and decentralized commerce.
The trends involving stablecoins bolster the idea that Layer 1 blockchains are reinforcing the rails of modern digital finance. Both institutions and retail customers are using these blockchains to move all kinds of value at tremendous scale.
Institutional Embrace of DeFi and RWA Expands Cross-Chain
One of the most impactful developments in L1 is a growing involvement of institutional players in decentralized finance and tokenized real-world assets.
Ethereum Layer 2 scaling solution Arbitrum is enjoying robust backing from DeFi-native institutions like Ethena Labs and Securitize. Meanwhile, Balancer has allied itself with Avalanche (AVAX), yet another high-performance L1 chain. These partnerships highlight a broader trend in which DeFi platforms are diversifying their chain presence to optimize for user demand and ecosystem incentives.
The next major growth frontier in the real-world asset world seems to be tokenization. Currently, there are 17 institutional asset funds; 8 of them are tokenized and built on Ethereum—the next major growth frontier in the real-world asset world seems to be tokenization. Currently, there are 17 institutional asset funds; 8 of them are tokenized and built on Ethereum.
Aptos is yet another highlight. The ratio of RWA to DeFi TVL at Aptos has leaped to 30.2%, signifying that about one-third of its nearly $1 billion in TVL is directly associated with real-world assets. AVAX has backed over $163 million in tokenized assets across 24 different products, showcasing its determination to connect traditional finance to blockchain infrastructure.
Even Solana, most famous for its speed and retail connections, is being thrust into the regulatory spotlight. A new proposal from Solana community backers aims to create a framework for on-chain securities that are in compliance with the SEC. If this initiative is successful, it could provide legal clarity and significantly ramp up the institutional capital connected to on-chain projects.
When decentralized infrastructure meets institutional finance, the future of Layer 1 blockchains gets rewritten in real time. Blockchain technology is seeing a rapid evolution, not just in its developmental aspects but, even more intriguingly, in the way it is being integrated into next-generation digital assets and the economic systems that will underlie them.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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