Ethereum Leads, Hedera’s Revenue Surges Nearly 500%: Messari’s Q1’23 Report

The Q1 2023 report from Messari highlights the continued dominance of Ethereum in terms of revenue generation among Layer 1 blockchains. However, the report reveals a notable standout: Hedera Hashgraph (HBAR), which demonstrated remarkable revenue growth fueled by its Consensus Service.

Ethereum Dominates Q1 Revenue

During Q1, Ethereum proved its dominance once again, emerging as the clear leader in revenue generation among Layer 1 blockchains. Driven by its widespread adoption and high gas fees, Ethereum recorded an impressive revenue of $457 million. This figure was nearly 2.8 times higher than the combined revenue of all other featured Layer 1 chains.

Ethereum remained the leader in most key financial and ecosystem metrics including market cap, revenue, DeFi TVL and volume, NFT volume, and full-time developers. Ethereum scored a 22 in DeFi Diversity, followed by Polygon (19), Solana (18), and BNB Chain (16).

Hedera (HBAR) Growth In Q1’23

While Ethereum dominated in terms of total revenue, the standout performer in Q1 was Hedera Hashgraph (HBAR). Hedera experienced an extraordinary revenue growth rate of 489% quarter-on-quarter (QoQ). This significant increase can be attributed to the adoption and utilization of Hedera’s Consensus Service

Hedera Hashgraph’s Consensus Service offers a unique approach to distributed consensus, enabling secure and scalable transactions. This service has gained traction among enterprises and developers seeking a robust and efficient blockchain solution.

Across featured networks, full-time developers (devs) decreased by 4% QoQ. Ethereum’s full-time dev count of 1,976 is almost equal to all other featured networks combined. Hedera’s full-time dev count increased the most of featured networks, growing 28% QoQ to 64.

About Messari Report:

The Messari report aggregates and compares the financial, network, and ecosystem analyses of the 14 Layer-1 (L1) smart-contract platforms including Avalanche, BNB Chain, Cardano, Ethereum, Harmony, Hedera, NEAR, Polkadot, Polygon, Solana, Stacks, Tezos, TRON, and WAX.

The key takeaways are:

• Ethereum remained the leader in most key financial and ecosystem metrics including market cap, revenue, DeFi TVL and volume, NFT volume, and full-time developers.
• USDC’s temporary depeg and Paxos ceasing BUSD issuance shifted stablecoin dominance toward USDT, benefitting TRON. TRON’s stablecoin market cap increased 30% QoQ to $43.6 billion; all other featured L1s with a significant stablecoin market cap saw theirs decrease QoQ.
• The featured L1s experienced an average QoQ increase of 83% in market cap, but network usage decreased by around 2.5%.