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New U.S. President, New Bitcoin All-Time High
A historic moment: the world’s first presidential race to have a unanimous recognition of the crypto industry. After years of regulatory headwinds and restrictions that isolated crypto service providers from traditional finance, the sector may finally see a path to more legitimacy under new leadership. This election could usher in an era of thoughtful regulation that allows cryptoassets to integrate with and enhance the existing financial system. The shift in attitudes represents a dramatic turnaround from previous administrations’ skepticism and adversarial approach. Where crypto firms once faced severe limitations on their operations, there is now hope for a regulatory framework that fosters innovation while addressing valid consumer protection concerns. This potential sea change could allow crypto to emerge from the shadows and realize its transformative potential in the global economy.
As the 2024 U.S. presidential election concludes, Republican candidate Donald Trump has been declared the winner in a decisive victory. Here’s how the race and its ripple effects on the crypto market are shaping up:
• The election has been called in Donald Trump’s favor, with a projected final electoral tally of 312 – 226, marking a sweeping victory for the Republican candidate.
• With a commanding 5M vote lead, Donald Trump is projected to win the popular vote by a margin of 1.5%—marking the first time a Republican has done so since George W. Bush’s victory in 2004.
• Key swing states—including Pennsylvania, Georgia, and North Carolina—have officially been called in Trump’s favor, solidifying the Republican’s clear path to victory. Three key states remain uncalled, including Arizona, Michigan, and Nevada, but the red wave shows no signs of slowing as they are set for a clean sweep.
• Crypto markets are responding swiftly to Trump’s anticipated victory and his well-documented pro-crypto stance:
o Bitcoin (BTC) surged to a new all-time high, reaching just shy of $76K in the early European hours.
o Dogecoin (DOGE) also rallied by 26%, driven by Elon Musk’s vocal support for both the asset and the Republican candidate.
o The SEC has actively pursued a regulation-by-enforcement approach in recent years, targeting specific projects with direct actions, including issuing Wells Notices to Uniswap (UNI) and Immutable (IMX). Both assets saw substantial gains on election night, with UNI rising 28% and IMX up 10%. This broad market reaction reflects optimism about the anticipated regulatory easing under the new administration, a trend we’ll explore in greater detail later in the report.
Looking back at election cycles
Bitcoin has demonstrated its nature as a non-partisan macroeconomic asset, with its performance during previous election cycles reinforcing this perspective. Excluding the current cycle, Bitcoin has only experienced three election cycles since its inception. Its political neutrality is evident in its robust performance across both Republican and Democratic administrations during these periods
Figure 1: Bitcoin Monthly Performance in U.S. Presidential Election Years
Source: 21Shares, Yahoo Finance
However, in this electron cycle, crypto has taken center stage, driven by its increasing mainstream acceptance and potential to revolutionize the U.S. economy. The focus has shifted to crypto’s capacity to innovate the financial system, address its inefficiencies, and potentially bolster the dollar’s global position through embracing US dollar-denominated stablecoins. Stablecoins are emerging as a crucial instrument for generating net new demand for U.S. Treasury securities, offering a potential remedy to the government’s mounting debt challenge that has recently reached $35T.
This evolving narrative can be observed with Bitcoin’s performance moving in tandem with Trump’s increasing likelihood of winning the presidency. Prediction markets like Polymarket and Kalshi showed Trump with a lead of over 20% ahead of Vice President Harris, as illustrated in Figure 2. This is where we saw Bitcoin’s price showing a strong correlation with Trump’s election odds on both Polymarket and Kalshi, with correlations of 0.83 and 0.89, respectively.
Figure 2: Bitcoin Price Performance vs. Presidential Candidate Odds
Source: 21Shares, Yahoo Finance
What does it mean for crypto under the Trump Administration?
With Trump now declared the winner, the crypto industry stands to benefit from a favorable outlook. His administration’s pro-crypto stance, along with a maturing regulatory environment for established assets like Bitcoin, points to a bright future for the sector. Under this new leadership, the deficit and inflation may continue to rise, strengthening the structural case for store-of-value assets like gold and Bitcoin and prompting an ongoing shift away from the dollar.
In this view, Trump outlined a clear strategy for treating the crypto industry. However, it’s crucial to approach such campaign promises with a degree of skepticism. Political candidates often present ambitious visions that may not fully materialize once in office, either due to changing circumstances or the complexities of governance. Their enacted policies frequently diverge from, or even contradict their initial campaign rhetoric. That said, here’s a breakdown of what he said so far:
Stablecoins and DeFi flourish:
• Trump’s lending platform, World Liberty Financial, has announced plans to launch its own stablecoin, a move that could bolster the credibility of this new financial instrument and drive further adoption.
• Consequently, DeFi stands to gain greater legitimacy, as Trump’s lending application is built on Aave—the largest lending protocol in crypto—effectively serving as a stamp of approval for the $90B sector.
• Yield-bearing stablecoins are likely to continue unlocking new utilities that traditional money market funds (MMFs) and other cash-like instruments can’t provide.
o Rather than investing in an MMF, investors can opt for stablecoins to earn yield while staying flexible and actively trading and engaging within decentralized finance (DeFi) ecosystems. Unlike MMFs, which require a full trading cycle for settlement, stablecoins offer instant liquidity, enabling users to seamlessly trade or deploy their assets as needed.
More institutional interest and new demand for Bitcoin:
• Under Trump’s presidency, increased government deficits and spending are likely to drive inflationary pressures higher, reinforcing Bitcoin’s store-of-value narrative. This environment would encourage investors to shift toward appreciating assets like equities and Bitcoin over the dollar.
o Trump’s policies would likely emphasize tax reductions and incentives for businesses, aiming to drive short-term market growth.
o His administration may also implement protectionist tariffs, aiming to support domestic industries but potentially impacting international trade relations. Tariffs however could result in higher prices for the end consumers as they are effectively a tax on imported goods that end up trickling down to the consumer.
o Tax cuts and tariffs could expand the deficit, heightening inflation risks and potentially leading to interest rate hikes to manage inflationary pressures.
• Trump’s administration would refrain from selling any Bitcoin currently held by the U.S. government, underscoring their confidence in its powerful store-of-value properties.
• Trump plans to bolster the domestic mining industry, aiming to position the U.S. as the global hub for Bitcoin. While this focus could raise concerns about centralization in the long term, it solidifies the industry’s foundation in the near term.
A favorable tax environment for crypto:
• There would be no capital gains taxes or elevated rates applied to Bitcoin and mining-related activities, creating a highly favorable tax environment for the crypto sector.
A clearer regulatory landscape:
• A push for deregulation would foster a favorable environment for crypto growth, potentially creating thousands of jobs domestically. This approach could also entice companies that previously left the U.S. to reconsider relocating back, strengthening the nation’s position in the global crypto market.
• Replace Gary Gensler at the SEC with a more pro-crypto advocate, bringing a supportive voice to the agency’s approach to regulating cryptoassets.
• Rescind impractical DeFi regulations that require intermediaries, such as decentralized exchanges (DEXs) and wallet providers, to collect user information—promoting a more privacy-focused and innovation-friendly environment.
• Set the stage for approving new ETFs in the U.S., opening up more avenues for retail and institutional investment via regulated financial products.
The global impact of Trump’s presidency:
• Trump’s push for crypto adoption could create a ripple effect, encouraging other countries to accelerate their own exploration of digital assets and integrate them into local financial markets.
• This influence could lead more nations to adopt favorable regulatory frameworks, potentially unleashing a wave of liquidity into the crypto market. With greater governmental endorsement, both institutional and retail investors would gain confidence, driving further growth in the sector.
What happens next?
Yes, the presidential election significantly influences the U.S. regulatory landscape, though it is not as hands-on or impactful as elections within Congress. The past four years have been turbulent for crypto companies, which have faced a regulation-by-enforcement approach amid legal uncertainty, as well as government agencies discouraging banks from providing services to crypto companies via what’s known as Operation ChokePoint 2.0. The presence of more crypto-friendly voices across regulatory bodies from both sides of the political aisle would expedite the establishment of clearer guidelines for this asset class.
House of Representatives (68.61% crypto-friendly):
• Tom Emmer Jr. (R) – 341 statements
• Warren Davidson (R) – 284 statements
• Mike Flood (R) – 66 statements
• French Hill (R) – 80 statements
• Josh Gottheimer (D) – 39 statements
• Ritchie Torres (D) – 30 statements
• Don Beyer Jr. (D) – 27 statements
• Jake Auchincloss (D) – 16 statements
Senate (60% crypto-friendly):
• Ted Cruz (R) – 57 statements
• Bernie Morino (R) – 23 statements
• Kirsten Gillibrand (D) – 18 statements
For years, the distinction has been blurry between the SEC’s jurisdiction over crypto and that of the Commodities and Futures Trading Commission (CFTC). Pending a Senate vote, the Financial Innovation and Technology for the 21st Century Act (FIT21) would provide the CFTC with new jurisdiction over digital commodities and clarify the SEC’s jurisdiction over digital assets offered as part of an investment contract. Additionally, the bill would establish a process to permit the secondary market trading of digital commodities if they were initially offered as part of an investment contract. With USD-pegged stablecoins now the 16th largest holder of U.S. debt, regulations like the Lummis-Gillibrand Act could also be pushed to the finish line, as it expands stablecoin adoption, reinforcing dollar demand.
We may also expect a price recovery within the longer tail of cryptoassets, especially those flagged with a Wells notice from the SEC.
• Immutable, the leading gaming platform, was the latest to receive a Wells notice for trading activities related to the sale of its native token IMX back in 2021. IMX rallied by 10% during election night as Trump looked increasingly favored to win.
• Uniswap Labs, the creator of the largest decentralized exchange (DEX) received a Wells notice in April, for allegedly running as an unregistered securities broker and unregistered exchange. UNI rallied by 28% during the closing periods of the election.
• Staking providers have also been flagged in a Wells notice sent to Consensys in June, for allegedly offering and selling unregistered securities, namely through its MetaMask Staking Service.
To recap, there has been a growing trend among DeFi protocols to implement revenue-sharing mechanisms for their token holders over the past several months. This movement is gaining momentum, as evidenced by Uniswap’s evolution into Unichain and Aave’s proposed activation of its fee switch. These developments mark the initial stages of a broader shift toward aligning protocol success with token holder benefits. To revisit our previous discussion, please review our summary for a comprehensive overview of our outlook.
With more crypto-friendly voices in Congress, supported by a crypto-friendly presidency, we believe the industry is set to finally meet the regulatory clarity that has been brewing for the past few years.
To bring it back all in, we believe that Trump’s presidency will bode well for Bitcoin and the broader crypto market. This will be supported by a more favorable regulatory environment, which should drive innovation and more investors into the space. His presidency will also exhibit a clearer understanding of crypto’s value proposition and its impact on the US economy. This would come in the form of broader acceptance of stablecoins and allow companies beyond banks to issue this new form of private money that would create new net demand for US debt while helping to strengthen the dollar’s position in the world. Finally, we expect DeFi, with tokenization at the forefront, to become more widely integrated to help address some of the current financial system’s shortcomings. This would address issues like slow settlement, exuberant fees, lack of transparency, democratizing access to financial markets, and accelerating financial inclusion.
What’s happening this week?
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
The crypto market has surged past $3T in total market capitalization, with smart-contract platforms leading the charge as risk appetite expands beyond Bitcoin. In particular, lean, cost-efficient blockchains have emerged as a key driver for onboarding users and boosting on-chain activity, as reflected in Figure 1.
• Solana soared 57% since the election, driven by memecoin-fueled retail interest and unprecedented DeFi activity, generating more revenue than Ethereum.
• Sui reached a new all-time high (ATH) near $4, also boosted by its gaming device pre-launch and consumer-friendly features.
• Aptos is gaining momentum for institutional-grade solutions like tokenization and payments, contributing to a recent price surge of 71%.
Figure 1 – Sector Price Performance Since Election Day
Source: Artemis, 21Shares
Given the proliferation of Layer 1s (L1s), it invites a closer examination of how the industry reached this point.
• Each L1 tackled the blockchain trilemma differently. While Bitcoin and Ethereum prioritized decentralization and security, later iterations focused on optimizing scalability.
• Ethereum’s first-mover advantage cemented the EVM as the standard for blockchain platforms, driving widespread adoption. However, its limitations spurred innovation, leading to the development of new virtual machines such as Solana’s SVM.
Despite these differences, each L1 plays a critical role in the on-chain ecosystem, tailored to unique use cases based on their architecture and features outlined in Figure 2 below.
Figure 2 – Technical Breakdown of Layer 1 Landscape
Source: Artemis, 21Shares
Below, we outline the unique strengths of each network, highlighting how they address various use cases in the order of their launch.
Ethereum – July 2015
The leading platform for decentralized applications (dApps) and a pioneer in smart-contract technology, as the first blockchain to introduce smart contracts.
• Ethereum laid the foundation for dApps and DeFi, commanding the highest liquidity with a Total Value Locked (TVL) of $60B.
• Its focus on decentralization and security, with more than 1M validators, makes it a trusted platform for tokenized government securities, totaling over $1.5B in assets.
• Ethereum hosts over 4,000 dApps, including prominent DeFi platforms like Uniswap and Aave, leveraging its unmatched network effects as the most widely adopted blockchain. While Layer 2 solutions enhance speed and efficiency, they have also introduced fragmentation, leading to reduced revenue.
Cardano – September 2017
The platform sets itself apart with a rigorous, research-driven approach to blockchain development.
• Introduced formal verification for smart contracts and enhanced Ethereum’s Proof-of-Stake (PoS) with Delegated Proof of Stake (DPoS), democratizing transaction validation.
• Collaborates with governments like Ethiopia to deploy Atala PRISM, enabling digital IDs that improve access to education and financial infrastructure in underserved regions. The network also promoted a transparent and efficient aid distribution system.
• Cardano’s growth has been hindered by slow development, a lack of EVM compatibility, and the absence of on-chain governance, resulting in a modest $456M TVL. Recent upgrades like the Chang Hard Fork foster a community-driven network, while the BitcoinOS integration will boost cross-chain utility by facilitating ADA-powered Bitcoin transactions.
Solana – March 2020
The network prioritized scalability powered by their innovative dual consensus model combining Proof of History (PoH) and PoS. With the ability to process nearly 3,000 transactions per second (TPS), Solana stands as one of the fastest blockchains available.
• This month, Solana’s DEX trading volume exceeded Ethereum’s by $40B, fueled by its efficient, low-cost blockchain and propelled by a dynamic DeFi ecosystem rich in retail-driven activity. This surge in trading volume has been a key driver behind the growth in Solana’s TVL, now reaching $8.3B.
• Solana powers decentralized physical infrastructure networks (DePIN) like Helium (broadband), Hivemapper (mapping), and Render (3D rendering), which demand high-speed, low-cost transactions at scale. Solana’s fast and efficient blockchain provides the necessary infrastructure for these applications to operate smoothly and cost-effectively.
• For Solana to deepen its integration with traditional finance—supported by PayPal’s PYUSD, which processes $30B, along with partnerships with Visa and Shopify—it must address ongoing network reliability issues, especially as its network experienced downtime once this year and multiple times over the past three years. The Firedancer validator client, capable of over 1M TPS on testnet, is positioned to reduce outages and enhance reliability, solidifying Solana’s role as a top solution.
Avalanche – September 2020
An EVM-compatible blockchain characterized by its subnet architecture, which enables customizable, permissioned networks connected to the Avalanche mainnet.
• Avalanche’s scalable subnet architecture enables customizable, permissioned networks with flexible gas fees, data privacy, and validator incentives. The Avalanche9000 upgrade enhances this with shared liquidity, lower validator costs, and full customizability, including geo-restrictions, making it ideal for tailored enterprise blockchain solutions.
• Avalanche’s Evergreen Subnets have attracted major TradFi players, including Franklin Templeton, which tokenized its $420M government money fund, as well as Citibank and Wellington Management exploring financial applications.
• Avalanche supports a wide range of industries, from Deloitte’s federal disaster reimbursement platform—designed to improve claim speed and transparency—to gaming projects like Shrapnel, which is built the GUNZ subnet. Its EVM compatibility and robust ecosystem pushed its TVL past $1B.
The Open Network (TON) – September 2021
A high-throughput blockchain designed for seamless user onboarding, TON aims to deliver a Web3 WeChat-like experience. Its strategic partnership with Telegram, which boasts 900M monthly active users, positions it as a key driver of mainstream blockchain adoption.
• TON’s Mini Apps act as a gateway to its on-chain ecosystem, leveraging projects like Hamster Kombat, which peaked at nearly 300M users, to drive retail adoption. However, its $300M TVL reflects a nascent financial ecosystem focused on simpler, retail-friendly use cases, leaving it comparatively underdeveloped in DeFi.
• Processing nearly 28M transactions this month, TON is strongly positioned to drive blockchain-based payments. Its recent USDT integration, surpassing $1B in supply within just seven months, further reinforces its potential in this space.
• Despite recent setbacks at Telegram, which operates independently from TON, the network’s growth this year underscores its strong potential. With scalable infrastructure and a vast addressable market, TON is well-positioned to onboard the next wave of users.
Aptos – October 2022
A high-performance blockchain leveraging the Move programming language, which was developed by Meta for their Diem project. Move prioritizes security and scalability, making it a strong contender for institutional use cases.
• Parallel processing enables sub-second settlement times and a theoretical throughput of 160K TPS, ensuring the performance needed for enterprise-grade applications.
• Aptos, led by ex-executives of Meta’s Diem project, is bringing institutions on-chain. Its credibility is bolstered by partnerships with TradFi giants like Microsoft, Franklin Templeton, and NBC Universal, alongside institutional-grade use cases such as Ondo’s tokenization platform. Alongside a growing DeFi ecosystem, which we’ll explore in detail later, these efforts have propelled its TVL to nearly $1B.
• Aptos streamlines Web3 access with keyless accounts, passwordless authentication, and transaction previews. Its support for emerging markets includes cost-efficient devices like the Jambo Phone, preloaded with blockchain tools. By combining advanced scalability with user-first design, Aptos is well-positioned for this cycle.
Sui – May 2023
Aptos’ twin is also a high-performance blockchain designed to deliver Web2-like simplicity to Web3. Also built on the Move programming language, it focuses on consumer-facing applications rather than institutional use cases.
• Sui caters to retail users with innovations like SuiPlay0X1, a gaming device bridging Web3 and traditional gaming. This focus has positioned Sui as a leader in consumer-facing dApps.
• Sui pairs sub-second finality and parallel processing with intuitive features like zkLogin for wallet creation via Google or Face ID, gasless interactions covered by apps, and QR-based payments with zkSend. By combining scalability with a user-friendly experience, Sui is primed to drive retail adoption and bridge the gap between Web2 and Web3, onboarding the next generation of crypto users.
• The recent launch of its Ethereum bridge and USDC support has significantly boosted Sui’s DeFi ecosystem, driving its TVL beyond $1.5B. This growth aligns with Sui’s recent ATH, just shy of $4.
We’ve just highlighted each blockchain’s unique features and selling points; now, let’s examine how these translate into real on-chain activity. We’ll assess key metrics like active addresses, decentralized exchange (DEX) trading volume, fees generated, and TVL to provide a clearer picture of each network’s performance.
Daily Active Addresses
Figure 3 – Daily Active Addresses on Smart-Contract Platforms in 2024
Source: Artemis, 21Shares
As shown in Figure 3 above, Solana emerged as a forerunner in user engagement, boasting the largest user base of 6.5M users driven by its trifecta of low fees, rapid transactions, and a user-friendly interface. A perfect storm for the memecoin frenzy that swept through the network this year, with more than 3.5M tokens launched on the memecoin factory pump.fun alone. Furthermore, Solana has become the preferred platform for the latest crypto trends, including tokens tied to AI-powered agents and DePIN protocols, as discussed earlier.
Similarly, Aptos has shown impressive user growth compared to other L1 blockchains like Avalanche, driven by its expanding DeFi ecosystem. Key developments fueling momentum include Blackrock’s BUIDL product expansion, the deployment of Tether’s USDT and Circle’s USDC on the network, and the upcoming integration of sBTC by Stacks. Together, these advancements are driving increased user enthusiasm and engagement across the network.
Ethereum, however, remains a formidable player, having effectively shifted a significant portion of its activity to L2 scaling solutions. This has resulted in almost 90% of transactions now occurring on L2s rather than the mainnet, underscoring the growing importance of scaling solutions as the execution layer for the legacy network. Despite this, L2s solutions have dramatically expanded Ethereum’s capabilities, achieving a 26-fold increase in throughput —382 transactions per second compared to 14 on the base layer—and attracting a user base of 2.6M, more than seven times Ethereum’s mainnet average of 350K users.
Decentralized Exchange Volume
Figure 4 – Decentralized Exchange Trading Volume on Smart-Contract Platforms in 2024
Source: Artemis, 21Shares
From a broader perspective, Ethereum and Solana dominate exchange activity, fueled by their thriving DeFi ecosystems. Ethereum has long maintained its top position, with the largest DeFi ecosystem boasting nearly $60B in TVL. Its financial applications have demonstrated remarkable resilience, withstanding multiple market challenges since 2020. In addition, Ethereum has been contributing almost 50% of all decentralized exchange (DEX) volume through the first three quarters of the year, until Solana flipped the script, as illustrated in Figure 4.
In fact, Solana has recently outpaced Ethereum across multiple metrics. For example, Solana’s DEX trading volume exceeded Ethereum’s by $40B in November, while its weekly DEX trading volume eclipsed Ethereum and all its Layer 2s combined during the final week of October. Additionally, three out of the top ten revenue-generating applications now operate on the Solana network. Notably, the Solana-based DEX Radyium generated $29B in trading volume over the last week, a 45% difference compared to Uniswap’s $20B. Furthermore, Solana-based platforms now account for three of the top ten DEXs, commanding over 40% of the total 24-hour trading volume across the entire crypto ecosystem.
Finally, while TON currently reports lower DEX volume and an underdeveloped DeFi ecosystem, its focus on simpler use cases has kept its TVL relatively modest. However, the upcoming Curve integration is expected to drive significant growth by enhancing stablecoin liquidity. Additionally, TON recently launched the testnet version of its bridging solution, enabling native Bitcoin transfers to its network. This breakthrough positions TON to tap into a vastly larger market, leveraging the $1.3T in dormant BTC.
Fees Generated
Figure 5 – Fees Generated by Smart-Contract Platforms in 2024
Source: Artemis, 21Shares
TON stands out among emerging platforms with its substantial network fees, driven by Telegram’s expansive Mini App ecosystem. This goes beyond crypto applications, integrating traditional services like ride-hailing and e-commerce, where TON-based assets are used for payments. Additionally, Telegram-centric offerings such as competitively priced global eSIMs, VPN solutions, and decentralized storage broaden its appeal, particularly to non-crypto-native users. All in all, this places TON as the third-highest fee-generating network compared to the other networks, which can be seen in Figure 8.
Alternatively, Solana has established itself as a fee-generating powerhouse, as depicted above in, Figure 5 with many leading dApps leveraging its high-speed, cost-effective blockchain. For example, the no-code memecoin creator platform Pump.fun has generated $220M in fees and attracted 150K users. Moreover, Solana-based protocols account for 50% of the top 15 fee-generating applications across all blockchains. Notably, trading bots Photon and BonkBot earn a combined $75M monthly, while Radium and staking provider Jito contribute $300M, collectively. This positioned Solana to currently generate 110% of Ethereum’s real economic value.
Finally, Ethereum’s recent Dencun upgrade led to a 90% reduction in L2 transaction costs. The upgrade introduced blobspace, an efficient data storage mechanism for L2 solutions. As this new system gains traction and approaches capacity, L2 transaction costs will gradually increase. This trend, already becoming apparent as shown below in Figure 6, suggests a potential resurgence in Ethereum’s mainnet revenue in the coming months.
Figure 6 – Ethereum Average Blob Count Per Block
Source: Dune Analytics, 21Shares
Total Value Locked
To recap, TVL serves as a crucial metric for financial ecosystems in the crypto space, analogous to assets under management in traditional finance.
Figure 7 – Total Value Locked in Smart-Contract Platforms in 2024
Source: Artemis, 21Shares
Ethereum, as the pioneer of DeFi, unsurprisingly maintains the largest TVL among all networks. However, the landscape is evolving rapidly.
Solana has emerged as a significant player, now commanding nearly 10% of DeFi’s TVL. This growth can be attributed to its seamless integration with traditional finance, expanding tokenization sector, and proliferation of payment-related use cases, as well as the surging maturity of its DeFi ecosystem.
Meanwhile, Avalanche continues to hold a substantial TVL, primarily due to its innovative subnet model that empowers businesses to create customizable networks with unprecedented control and flexibility. Consequently, Avalanche has become a hub for tokenization projects and institutional financial applications, both live and in development, as its network design effectively meets the business and privacy needs essential for TradFi.
In conclusion, these metrics provide a comprehensive view of the current standing and performance of various layer-1 blockchains. As seen in Figure 8, these platforms illustrate the diversity in blockchain usage patterns and provide insight into how each chain is positioned to compete in the landscape of blockchain-based applications. We believe there will not be “one chain to rule them all” and instead we will see a multi-chain future where certain chains are used over others for specific use cases.
Figure 8 – Summary of Key Metrics Across Smart-Contract Platforms
Source: Artemis, 21Shares
What’s happening this week?
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
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