Tezos (XTZ) Saw Contract Deployments Surge by 184% in Q4 2024, the EVM-compatible Layer 2 solution, saw its contract deployments surge by 184%, with over 1,700 new contracts deployed

In Q4 2024, Tezos's Etherlink, the EVM-compatible Layer 2 solution, saw its contract deployments surge by 184%, with over 1,700 new contracts deployed

In the fourth quarter of 2024, Tezos’s Etherlink, an EVM-compatible Layer 2 solution, saw a substantial increase in contract deployments. According to the State of Tezos Q2024 report by Messari, over 1,700 new contracts were deployed on Etherlink, marking an impressive 184% surge.

This growth in Etherlink's activity was accompanied by a significant boost in the network's DeFi sector. Etherlink's total value locked (TVL) saw a remarkable increase, largely driven by both the increase in Tezos (XTZ) price and the platform's appeal for lower fees and faster transaction speeds. However, this growth in Etherlink's TVL came at the expense of Tezos L1, which saw a decline in its TVL.

Despite this shift in TVL distribution, Tezos L1 also thrived during Q4 2024. The network saw an 18% quarter-over-quarter (QoQ) increase in contract deployments, bringing the total number of new contracts deployed on Tezos L1 to 5,800.

Furthermore, Tezos L1 experienced a substantial 30.4% increase in transaction fee revenue compared to the previous quarter. When measured in USD terms, this growth becomes even more evident, with a remarkable 90.8% surge.

Adding to these positive metrics, the number of daily active addresses on Tezos L1 also grew significantly, showing an impressive 37% increase QoQ. On average, there were approximately 1,800 unique addresses actively engaging with the Tezos L1 network each day.

Finally, the Quebec upgrade, which was introduced during this period, brought several improvements aimed at supporting the seamless integration of Ethereum-based assets and dApps. This enhancement further boosted the network's appeal for DeFi applications, especially those migrating from Ethereum.

The combination of this upgrade with Etherlink's lower fees and faster transactions further solidified Tezos's position as a more efficient platform for both developers and users, setting the stage for continued growth and adoption in the coming quarters.

As we look ahead to the future of the Tezos ecosystem, we can expect to see further evolution and expansion. One of the upcoming initiatives that is sure to have a major impact is the JavaScript Rollup, which will allow developers to build and deploy JavaScript-based smart contracts on the Tezos blockchain.

In the meantime, Tezos's native token, XTZ, is currently trading at $1.10, with a market capitalization of $1.13B, which ranks 83rd among all cryptocurrencies by market cap.