• Q1 2023 has seen an average 83% market cap increase in Layer-1 (L1) smart contract platforms, despite a 2.5% decrease in network usage.
• Ethereum dominated the revenue with $457M, 2.8x more than the combined revenue of all other featured L1s.
• TRON saw a 30% boost in its stablecoin market cap due to Tether (USDT)’s increased dominance over USDC and BUSD.
Q1 Market Performance
Q1 2023 has seen an average 83% market cap increase in Layer-1 (L1) smart contract platforms, despite a 2.5% decrease in network usage. Stacks emerged as a top performer, energized by renewed interest in Bitcoin programmability. The shifting landscape of stablecoins led to an increased dominance of Tether (USDT), benefiting networks like TRON which experienced a 30% boost in its stablecoin market cap.
Despite the slight decrease in network usage, Ethereum sustained its dominance across several key financial and ecosystem metrics with $457M generated from high usage and gas fees – almost 2.8 times the combined revenue of all other featured L1s.
Staked Tokens Surge
In terms of staked tokens, every network experienced a quarter-on-quarter increase in USD terms during Q1, with Stacks and Solana taking the lead at 403% and 125%, respectively. The surge outpaced their respective market cap growth, implying a net uptick in staked native tokens on each network..
A crucial aspect of blockchain ecosystems is validator count which varies but doesn’t standardize across networks such as Ethereum, Avalanche, Cardano, Polkadot & Harmony employing some form of stake-weight limit system for consensus service providers or validators .
In summary ,Q1 2023 saw Ethereum dominate revenue generation ,TRON benefit from USTD ’s dominance while staked token s surged on every platform . Validator count remains an important factor to consider when assessing these networks .