With the increasing competition between blockchain technology and cryptocurrencies, protocol innovation and the ability to solve the biggest challenges facing the crypto community is essential for any project that wants to achieve long-term success in the ecosystem.
Recently, the emergence of Layer 2 technologies such as Arbitrum, Optimism, and Bridge to the Avalanche has revolutionized the way investors, developers and developers interact with different protocols, each allowing for fast and affordable transactions that improve the foundation of decentralized finance (DeFi), while the Individual investors should take advantage of the opportunities that open up.
According to Token Terminal data, DeFi continues to be one of the fastest growing segments of the crypto economy, as evidenced by the increase in the total blocked value (TVL) of the protocols. Some of the biggest developments in the past week have been in interoperable multi-chain networks and Layer 2 protocols that provide a more affordable environment.
Top 6 weekly gains were recorded in total. Source: Token Terminal
Two of the top six projects in the list above, Trader Joe and Pangolin, are part of the Avalanche Network, which has seen a massive influx and growth of TVL since the launch of the modern bridge that unlocks Ethereum-based tokens and applications. Migration to the avalanche ecosystem.
Full value insured against landslides. Source: Devi Lama
Management jobs have also been a positive factor driving the growth of new businesses, with Alchemix Finance and Rari Capital both garnering existing or recently completed votes to improve ecosystems and increase community involvement.
Related: Bitcoin Is Great, But Real Crypto Innovation Has Moved Elsewhere
Tier 1 projects and decentralized exchanges are booming
Another trend evident in Token Terminal data is the growing power of derivatives and options trading protocols, as regulators increasingly oppose centralized exchanges that provide derivative services and have weak KYC and money laundering requirements.
Top 6 weekly income by protocol income. Source: Token Terminal
As shown in the chart above, two of the biggest gains in terms of return on the protocol over the past week are dYdX and Hegic, a pair of protocols that offer investors decentralized derivatives and options on the blockchain.
In recent months, global regulators have tightened their grip on leveraged trading platforms and derivatives, as well as exchanges such as Coinbase to provide futures trading services, suggesting that this is a sector that will continue to grow as cryptocurrencies grow. More and more popular.
DYdX has also benefited from working on a Tier 2 solution co-developed with StarkWare, which provides continuous cross-distribution without gas costs and low trading fees.
Data shows that Ethereum competitors such as Tezos and Cosmos have seen revenue growth in the past week, suggesting that the first battle is heating up as users continue to be motivated to explore other options.