Tezos sees the height of revenues but the decrease in the activity with the transformation of users to layer 2

TEZOS Layer 1 increased by 30.4 % quarter of a quarter of (QOQ) in transaction fee revenues, reaching 11100 XTZ in the fourth quarter 2024.

Nevertheless, the total network activity on Tezos decreased by 5 % during the same period, as the average monthly transactions and contract calls reached 3.2 million.

According to the latest Missari a reportThis decline corresponds to the continuous shift towards layer 2 solutions such as Etherlink, which provides faster and lowest cost transactions to support the TEZOS scaling strategy. Although the total transactions were less, the daily active headlines (DAA) increased by 37 % of the previous quarter, with an average of 1,800 unique titles per day.

This increase in the unique portfolios indicates that although the volume of transactions is low, the base of the network users continues to grow, which reflects the direction of wider adoption.

Web 3 and NFT on Tezos

Q4 2024 has seen a big boost in Web3 Gaming and NFT on Tezos, driven by Etherlink, the Evm Layer 2 layer that offers fast treatment finals and low fees. The gaming sector has flourished with major integration operations, such as the Rarible launch of The Battlerise Founder Pass, the first NFT game on Etherlink.

This pass is granted inside the game, exciting bonuses, and rental chances. Sugarperte has expanded the game scene with Sugar Match, a Match-3 puzzle game that includes a trading NFTS.

In addition, ETHERLINK has seen successful NFT drops like MDCL and Chapter 00, both of them sell quickly. Games friendly infrastructure from Etherlink enables developers to publish smart contracts based on ETHEREM smoothly on Tezos. With cost productivity and efficiency, the ecological system continues to attract new projects.

Currently, more than 100 projects are developed on ETHERLINK, which enhances its location as a major destination for web3 games, NFT prices, and digital expertise running Blockchain.

Defi expands on Tezos

The total closed value (TVL) in US dollars increased by 6 % QOQ in the fourth quarter 2024, closing $ 53 million. However, this growth stems from the high price of XTZ, as TVL has already decreased in XTZ terms by 37 % compared to the last quarter. Meanwhile, TVL from Etherlink rose to up to $ 1.5 million, almost doubled from the third quarter levels. This indicates that liquidity migrates from Tezos to etherlink amid increasing dependence of layer 2 solutions.

Youves, applying decentralized artificial assets, topped by TVL between Tezos Protocols and contains more than $ 32 million, which represents 28 % growth of Q3. Sirius, a liquidity baking protocol XTZ/TZBTC, is second with $ 9.8 million, followed by Kord.fi, another liquidity bread platform, with $ 5.91 million in TVL.