Multi-million dollar incentive programs and the ease of cross-chain transfers are boosting the value of L1 and L2-based tokens and raising the total value locked in their associated DeFi platforms.
The competition among layer-one (L1) smart contract platforms has been on the rise in the past couple of months as traders and developers continue to embrace Ethereum (ETH) network alternatives that offer faster transaction times and lower fees.
According to a recent report from Delphi Digital, the price of Ether has remained relatively flat over the past month while competitors like as Solana (SOL) and Fantom (FTM) have seen their prices rally more than 200% during the same time.
One of the drivers of the rallies seen in Fantom (FTM), Avalanche (AVAX) and Terra (LUNA) is the fact that each has launched a variety of mulit-million dollar funding initiatives designed to attract developers, investors and new liquidity to their ecosystems.
These initiatives sparked a flurry of new activity and cross-chain transfers from the Ethereum network to the layer-1 projects and to date, Solana has seen the biggest gains.
When it comes to individual applications located on the different blockchains, the Avalanche-based Trader Joe DeFi protocol has seen the biggest gain in terms of TVL over the past seven days as the value locked on the protocol has increased by 57%.
Source: cointelegraph.com