Tezos Revenue Surges 30% Despite Slow Network Activity
Tezos, a blockchain platform known for its self-amending protocol and on-chain governance, has witnessed a significant surge in revenue despite a slowdown in its network activity. The platform's revenue rose by 30.4% quarter-over-quarter (QoQ) to 11,100 XTZ in Q4 2024, driven primarily by an increase in transaction fee revenue.
One of the key factors contributing to this growth is the adoption of Layer 2 solutions within the Tezos ecosystem. Tezos' first EVM-compatible smart roll-up, Etherlink, grew by 44% in Q4, hitting 6,669 XTZ. This sharp growth highlights the increasing demand for faster transactions and lower costs, which Layer 2 solutions like Etherlink can provide.
Despite the boost in fee revenue, overall network activity on Tezos dipped by 5% in Q4. Monthly transactions and contract calls averaged 3.2 million, reflecting a slowdown in Layer 1 usage. However, this decline aligns with a broader shift towards Layer 2 solutions, which offer faster transactions and lower costs.
Interestingly, daily active addresses (DAA) on Tezos surged by 37%, reaching an average of 1,800 unique wallets daily. This suggests that despite declining overall transaction volume, user engagement with the network is increasing. This is a positive sign for Tezos' adoption and long-term growth.
Q4 2024 marked a breakthrough for Web3 gaming and Non-Fungible Tokens (NFTs) on Tezos, with Etherlink playing a pivotal role. The ecosystem saw activity driven by key gaming integrations and NFT releases. One of the most significant was the launch of the BattleRise Founder Pass by Rarible, the first gaming NFT on Etherlink. This pass granted in-game benefits, staking rewards, and rental opportunities, setting a precedent for future gaming assets on the network.
Sugarverse also expanded the gaming landscape with Sugar Match, a match-3 puzzle game featuring tradable NFTs. Etherlink's NFT ecosystem also flourished with sold-out collections like MDCL and Chapter 00. This further proved the platform's appeal to digital artists and collectors. Etherlink's ability to seamlessly integrate Ethereum-based smart contracts into Tezos has positioned