Ethereum mainnet charges dropped 44% in 2023, signaling elevated migration to cheaper Layer 2 scaling options.
Ethereum’s Layer 2s are having fun with widespread utilization from customers after final yr’s Merge, in line with a report by P2P lending protocol PWN.
Led by Arbitrum and Optimism, which witnessed a 190% and 103% surge in community charges, respectively, the general Layer 2 ecosystem noticed charges enhance 400% from 2022 to 2023.
Together with hovering charges on Layer 2s come decreased prices for customers on Ethereum’s mainnet, PWN reviews. The community witnessed a 44% decline in generated charges, greater than double the typical for all Layer 1s.
It appears customers are migrating in droves to Layer 2 options, with the transfer to Proof-of-Stake accelerating the transition.
Bitcoin, turbocharged by the Ordinals ecosystem, registered the best development amongst Layer 1s with a 461% surge in charges generated.
DeFi and NFTs Take A Dive
Decentralized exchanges suffered a 51% drop in complete charges generated final yr. Led by Uniswap, which instructions 64% of the complete price market, the DEX sector generated $871M in 2023.
Regardless of struggling a threatening hack in late November, KyberSwap was the one DEX that noticed development in its price market, leaping 73%.
Lending platforms spotlight a blended bag by way of the focus of worth and costs generated. The whole sector noticed charges decline 36%, with market chief Aave mirroring that quantity. Nonetheless, half the class dropped – with some, reminiscent of Maple Finance, dropping 99% – whereas the opposite 50% elevated. Radiant was the highest performer, producing 479% extra charges over 2022.
The NFT market sector was hit arduous by final yr’s grueling crypto winter. Charges plummeted by 87% regardless of Blur’s meteoric 2,718% rise.
Stablecoins are extensively poised for development this yr, with USDC set for a comeback after a dismal 2023. It registered its first web provide enhance for the reason that collapse of Silicon Valley Financial institution final yr – totalling a $1.23B rise on the yr.
