CRYPTO

Data layers show parabolic-style growth on 2-based DFI and DX platforms


In the increasingly competitive landscape of blockchain technology and cryptocurrency, the ability to innovate protocols and solve the biggest problems facing the crypto community is essential for any project that shows long-term success in the ecosystem.

Recently, the emergence of Layer-2 technology as a bridge between Arbitram, Optimism and the Himalayan ecosystem has revolutionized the way investors, manufacturers and developers interact with different protocols as each facilitates faster, lower-cost transactions that fundamentally improve decentralized money. Makes it easier for investors to capitalize on opportunities.

According to Token Terminal, DFI continues to be one of the fastest growing sectors of the crypto economy, as evidenced by the increase in the total value of the protocol locked (TVL). The biggest gains of the past week have been in cross-chain compatible networks and layer-to-protocols that offer a lower fee environment.

The total value of the top-6 weekly beneficiaries is locked. Source: Token Terminal

Two of the top projects on the list, businessman Joe and Pangolin, have been found on the Avalanche network, which has seen significant flows since the launch of an advanced cross-chain bridge and increased TVL applications for migration to Ethereum-based tokens and snow ecosystems.

The total value is locked in the sublank. Source: Daffy Lama

Administration features have been a positive factor in helping projects spread new growth because both Alchemics Finance and Rare Capital have ongoing, or recently completed polls designed to improve their ecosystems and increase community engagement.

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Layer-1 projects and decentralized leveraged exchanges are enriched

Another emerging trend shown in Token Terminal data is the growing power of derivatives and options trading protocols because regulators crack down on increasingly centralized exchanges that provide derivatives services and relax KYC and AML requirements.

Top-6 weekly earners of protocol income. Source: Token Terminal

As shown in the chart above, two of the biggest gains in terms of protocol revenue last week were Dividex and Hagic, a pair of protocols that provide investors with decentralized derivatives and on-chain option trading.

Global regulators have in recent months scrutinized their leverage and derivatives trading platforms, while at the same time, established exchanges such as Coinbase have applied to offer futures trading services, indicating that it is a sector that is ready for growing growth.

dYdX has also benefited from the fact that it works in a layer-to-two solution with Starkware that enables cross-margin perpetuation with zero gas consumption and minimal trading fees.

Data shows that Ethereum-competitors such as Tejos (XTZ) and Cosmos (ATOM) saw revenue increases last week, prompting the Layer-1 battle to inspire high-fee users on the Ethereum network to explore other options.

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