Tezos’ Etherlink L2 sees a 184% surge in contract deployments, according to Messari’s Q4 2024 report

Tezos’s Etherlink, an EVM-compatible Layer 2 solution, experienced impressive growth in Q4 2024, as contract deployments surged by 184%, with over 1,700 new contracts launched. This surge is highlighted in the State of Tezos Q4 2024 report by Messari, reflecting the growing adoption and utility of the Etherlink platform.

In addition to the increase in contract deployments, Tezos’s DeFi sector also saw significant growth. Etherlink’s Total Value Locked (TVL) rose sharply, driven by the increased Tezos token price and the platform’s appeal due to its lower fees and faster transaction speeds. However, this growth was somewhat at the expense of Tezos Layer 1 (L1), which saw a decline in its TVL.

Despite the decrease in Tezos L1’s TVL, the network itself performed well in other areas. Tezos L1 experienced an 18% quarter-over-quarter increase in contract deployments, with 5,800 new contracts. Moreover, transaction fee revenue grew by 30.4% compared to the previous quarter, marking a substantial 90.8% increase in USD terms. Daily active addresses on Tezos L1 also grew by 37%, reaching an average of 1,800 unique addresses per day.

The recent Quebec upgrade further enhanced the Tezos ecosystem, introducing features aimed at streamlining the integration of Ethereum-based assets and decentralized applications (dApps). This upgrade, combined with Etherlink’s lower fees and faster transaction speeds, has helped solidify Tezos as an efficient platform for developers and users alike.

Looking forward, Tezos is set to continue its evolution with initiatives like the upcoming JavaScript Rollup, which will enable developers to create JavaScript-based smart contracts.

As of now, Tezos’s native token (XTZ) is trading at $1.10, with a market capitalization of $1.13 billion, positioning it as the 83rd largest cryptocurrency by market cap.