• Q1 2023 saw an 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 due to a renewed interest in Bitcoin programmability.
• Tether (USDT) benefited from the USDC depeg and halt of Paxos’ BUSD, with TRON experiencing a 30% boost in its stablecoin market cap.
Q1 2023 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, energized by a renewed interest in Bitcoin programmability, has emerged as a top performer. The shifting landscape of stablecoins, driven by the temporary USDC depeg and halt in the issuance of Paxos’ BUSD, led to an increased dominance of Tether (USDT), benefiting networks like TRON.
Stablecoin Market Dynamics
Amid the crypto market’s rebound in Q1 2023, the L1 smart contract platforms experienced an average market cap surge of 83%. Despite this resurgence, network usage fell slightly by 2.5%, underlining the complexity of the current market dynamics. Owing to USDC’s temporary depeg and the cessation of Binance USD (BUSD) issuance by Paxos, USDT has now taken center stage – particularly favouring TRON which witnessed a 30% boost in its stablecoin market cap.
Network Usage & Staking Activity
In terms of staked tokens every network experienced a quarter-on-quarter increase during Q1 – with Stacks (403%) and Solana (125%) taking the lead respectively – outpacing their respective market cap growths implying net uptick in staked native tokens. A crucial aspect of blockchain ecosystems is validator count which varies across networks; Ethereum, Avalanche, Cardano, Polkadot and Harmony employ some form stake weight limit based PoS consensus mechanisms for validators selection process which helps to secure these blockchains from various attack vectors such as malicious actors attempting to gain control over large number staked tokens or computational power on networks for malicious intentions or double spending attacks etc..
Ethereum Revenue Dominance
Despite decrease network usage Ethereum upheld its dominance across several key financial & ecosystem metrics throughout Q122023 generating nearly 2x times revenue than combined other featured L1s thanks largely high gas fees driving revenues up to $457M! This makes Ethereum unquestionably dominate other L1s and Hedera leaving them far behind dust!
Q122023 has showcased impressive performances from multiple players within crypto space even though overall network usages decreased slightly by 2%, however certain anomalies such as USDC depeg & halt issuing BUSD allowed USDT take central stage ultimately benefitting networks like TRON immensely! All these findings further cement solidifying ‘value proposition’ behind tokenizing public/private assets & real world use cases leveraging blockchain technology for mainstream adoption!