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TRON Layer 1 cools down while Layer 2 heats up with NFTs, DeFi, and Web3 gaming.
Tezos saw a mixed bag in Q4 2024 — while revenue from transaction fees surged, overall network activity dipped, revealing a growing shift toward Layer 2 adoption led by Etherlink, its EVM-compatible smart roll-up.
Revenue Up, Activity Down
According to Messari, Tezos Layer 1 posted an impressive 30.4% increase in transaction fee revenue, reaching 11,100 XTZ. Etherlink outpaced even that, with a 44% rise to 6,669 XTZ — all while network activity across Tezos declined by 5%.
Despite fewer monthly transactions and contract calls (averaging 3.2 million), daily active addresses (DAA) told a different story — up 37% QoQ, averaging 1,800 unique wallets per day. The takeaway? Users are still showing up, just doing more on Layer 2.
TL;DR: Revenue’s growing, but the real action is moving to Etherlink.
Etherlink Fuels Web3 and NFT Growth
Etherlink is quickly becoming Tezos’ Web3 gaming and NFT hub, thanks to its low fees and EVM compatibility. In Q4:
- Rarible dropped the BattleRise Founder Pass, offering perks, staking rewards, and in-game NFT rentals.
- Sugarverse launched Sugar Match, a match-3 puzzle game with tradable NFTs.
- NFT drops like MDCL and Chapter 00 sold out fast, signaling strong market demand.
With over 100 projects now building on Etherlink, it’s clear the Layer 2 is positioning itself as a go-to for Ethereum-based developers seeking faster, cheaper deployment.
DeFi Landscape Shifting
Tezos’ DeFi sector showed modest growth. Total Value Locked (TVL) in USD rose 6% QoQ, reaching $53 million. But in XTZ terms, TVL actually fell 37%, meaning most of the growth came from price appreciation, not new deposits.
Meanwhile, Etherlink’s TVL nearly doubled, jumping past $1.5 million, hinting at a liquidity migration to Layer 2.
Top Tezos DeFi platforms by TVL:
- Youves: $32M (28% QoQ growth)
- Sirius (XTZ/tzBTC): $9.8M
- Kord.Fi: $5.91M
The Big Picture
Tezos is seeing a clear trend: while Layer 1 continues to perform, users, developers, and liquidity are gravitating toward Layer 2 — especially Etherlink. The move unlocks scalability without sacrificing Tezos’ ecosystem, and positions Etherlink as a major player in Web3, DeFi, and NFT infrastructure.
TL;DR: Tezos Layer 1 revenue is rising, but user activity is shifting to Etherlink, the ecosystem’s EVM-compatible Layer 2. With growing traction in gaming, NFTs, and DeFi, Etherlink is quickly becoming the heart of Tezos’ next chapter.
