State of LayerZero Q2 2024

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  • Post category:Ethereum News

Key Insights

Performance Analysis

On June 20, 2024, LayerZero Foundation launched ZRO, the native token of the LayerZero protocol. As an Omnichain Fungible Token (OFT

Total messaging fees paid by users dropped 34% QoQ to $12.7 million in Q2’24. The top source chains

The average fees metric calculates the fees collected per message sent on the network. A significant portion of these fees is used to cover gas costs on various networks. High-fee chains like Ethereum can increase the average fees collected due to their higher transaction costs. The lowest average cost of transactions on the networks measured was Polygon in Q2’24 at an average of $1 per message sent. The token launch may have contributed to a spike in transaction fees on chains supporting ZRO (for example, average gas fees rose from below 1 cent to 87 cents

In Q2’24, the value of assets transferred via bridge applications using LayerZero across the top 10 networks totaled $5 billion, down 26% QoQ. This decline was primarily due to efforts to deter Sybil farming

By deterring Sybil farming, onchain data shows genuine users instead of inflated numbers from entities utilizing multiple wallets (defined as clusters of 20 addresses linked to the same individual by LayerZero Foundation in the lead-up to TGE). Although the total value of assets transferred decreased QoQ, the average value per message increased by 78.2% to over $400 per message. This indicates that genuine users are leveraging the LayerZero protocol to secure higher-value transactions compared to industrial Sybil farmers.

In Q2’24, Arbitrum ($1.2 billion), Ethereum ($913 million), and Optimism ($893 million) were the top three source networks in transfer volume for bridges built on top of LayerZero. Ethereum saw a 26% increase in transfer volume QoQ, from $725 million in Q1’24 to $913 million in Q2’24. A number of key factors incentivized users to use the Ethereum ecosystem including: lower gas fees

The number of messages sent on LayerZero was over 12.3 million in Q2’24, down 58% QoQ. The Q1’24 figure was likely a consequence of the community’s anticipation of a native token launch

Application Deployment

In Q2 2024, the LayerZero protocol surpassed the 50,000 milestone, ending with almost 55,000 OApps deployed. As part of the ZRO TGE, teams were invited to submit proposals

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