- Layer-1 and layer-2 based tokens popularity surges through September
- There has been stiff competition between layer-1 smart contract platforms
- Product developers and investors continue to favor alternatives to the Ethereum blockchain
Layer-2 based tokens have experienced a rise in popularity throughout September as digital currency investors continue to move to more affordable options to Ethereum. This rise in user interest has spiked the total value locked on related decentralized finance platforms.
Over the past couple of months, there has been stiff competition between layer-1 smart contract platforms as product developers and investors continue to favor alternatives to the Ethereum blockchain. This is mainly because most competing networks offer reduced fees and faster transactions.
Based on reports, the price of Ethereum has remained mostly stagnant over September while competing networks prices continue to surge upwards by more than 200% over the same duration.
Competing Ethereum network alternatives like Avalanche, Fantom and Luna have been on the news as they launch new projects on their networks and secure funding from well-known DeFi venture capitalists. These activities have continued to attract investors, developers, and new liquidity on the platforms.
The activities have also sparked new activity and cross-chain transfers from the ETH network to other layer-1 platforms, with Solana experiencing the most gain. In terms of TVL, Trader Joe on the Avalanche network has experienced the most gains, with a 57% increase over the last week.Kibet Elikana