Ethereum Alternatives and Layer One Solutions See Steady Gains in September

Competition between layer-one smart contract platforms has increased in recent months. This is because traders and developers Ethereum (ETH) continue to embrace network alternatives that offer faster transaction times and lower costs.


Competition is increasing

According to a recent report from Delphi Digital, the price of ETH has remained relatively flat over the past month. This while competitors such as Solana (SOL) and Fantom (FTM) have seen their prices rise by more than 200% in the same period.

One of the reasons behind the rallies in Avalanche (AVAX), Fantom (FTM) and Terra (LUNA) is the fact that each has launched a variety of multi-million dollar funding initiatives. These initiatives are designed to attract developers, investors and new liquidity to their ecosystems.

These initiatives sparked a wave of new business and cross-chain transfers from the Ethereum network to the layer one projects. So far, Solana has made the biggest profit.


Layer-two platforms increase their gas consumption

It’s not just Ethereum’s low-one competitors that have seen an increase in activity in recent months. The launch of several new layer two solutions and an airdrop by the decentralized exchange DYDX have led to an increase in gas consumption through layer two protocols.

ETH L2 Gas

Delphi Digital data shows that the percentage of gas used by layer two solutions is now above 1%. By early September, it had risen to a whopping 2%.

The DYdX protocol was one of the early adopters of layer two technology thanks to a partnership with StarkWare. The protocol has seen a new level of activity in recent weeks following the release of its DYDX token. It was sent on September 8 to users who had previously used the protocol.

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Since the release of the airdrop, the total value on DYDX has increased from approximately $422 million to approximately $554 million. The 24-hour training volume has also increased from approximately $700 million to as much as $2.4 billion.

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