Ethereum Dominates Q1 Revenue, Outperforms All Other L1s and Hedera


• Q1 2023 saw an average 83% market cap increase in Layer-1 (L1) smart contract platforms.
• Stacks emerged as a top performer, driven by renewed interest in Bitcoin programmability.
• Ethereum maintained its dominance across various financial and ecosystem metrics, despite a decrease in network usage.

Stablecoin Market Dynamics

The shifting landscape of stablecoins was driven by the temporary USDC depeg and halt in the issuance of Paxos‘ BUSD, leading to an increased dominance of Tether (USDT). This change particularly benefited TRON, which experienced a 30% boost in its stablecoin market cap.

Network Usage and Revenue

Network usage fell slightly by 2.5%, however Ethereum generated the highest revenue in Q1, driven by its high usage and gas fees amounting to nearly 2.8 times the combined revenue of all other L1s featured in the report.

Staked Tokens

Every network experienced a quarter-on-quarter increase in USD terms during Q1, with Stacks (403%) and Solana (125%) taking the lead. The surge in total staked tokens for each network outpaced their respective market cap growth, implying a net uptick in staked native tokens.

Validator Counts

A crucial aspect of the blockchain ecosystem is validator count which varies across networks and doesn’t strictly standardize. Networks like Ethereum, Avalanche, Cardano, Polkadot, and Harmony employ some form of stake-weight limit