The Etherlink network, a Layer 2 solution built using Tezos Smart Rollups, has witnessed a dramatic expansion in its crypto ecosystem, with total value locked (TVL) multiplying over 12 times.
Since emerging from its test phase in February, this EVM-compatible blockchain has seen its TVL climb from $1.4 million to surpass $18 million. This significant uptick is largely attributed to the launch of the “Apple Farm” rewards initiative.
The $3 million incentive program was designed to accelerate user adoption and stimulate activity within Etherlink’s decentralized applications (dApps). Its success exceeded initial forecasts, rapidly drawing liquidity and users into the network.
Decentralized finance (DeFi) protocols on Etherlink have been major beneficiaries. IguanaDEX, for instance, handled $150 million in trading volume as users capitalized on reward opportunities and arbitrage strategies fueled by the incentives.
“The success of Apple Farm demonstrates the effectiveness of our approach to incentive programs and the development of this ecosystem,” noted David Relkin, Head of DeFi for Tezos ecosystem contributor Nomadic Labs, highlighting the strategic impact of the rewards.
Independent analysis confirms Etherlink’s robust growth trajectory, pointing to steady increases in user accounts and transaction counts. Over 50 projects are actively building on the platform, indicating growing developer confidence.
Among the standout DeFi protocols, Superlend has attracted substantial capital, securing $16.93 million in deposits while facilitating $10.49 million in active loans, establishing itself as a cornerstone of Etherlink’s DeFi landscape.
Technical enhancements are also bolstering the network. The recent Calypso upgrade significantly improved smart contract storage speeds by 30x, reduced the hardware demands for node operators, and enhanced network stability during high traffic periods.
These upgrades prepare Etherlink for increased transaction throughput and aim to streamline asset movement between the Layer 2 and the main Tezos blockchain.
Future growth looks promising with the upcoming Fortify Labs accelerator cohort, which features seven new projects building primarily on Etherlink. Notable participants include decentralized data platform BluWhale AI, stablecoin project IDRX, and eSports venture Miomi Game.