Layer by Layer Issue 47: Polkadot, Algorand, and Avalanche

Many of our recent discussions have centered on the development of cross-chain technologies and infrastructure. At a time when on-chain activity has been relatively muted across L1 ecosystems for the past few months, it has become especially difficult to evaluate the performance of blockchains as it pertains to scaling. Without organic demand for block space from users looking to utilize DeFi applications on-chain, our ability to directly observe the average user experience for different chains under stress is significantly diminished. 

One of the clearest indications of this downward trend in L1 activity is the monthly volume on decentralized exchanges (DEXs), which, as of this writing, is on pace to reach yet another low for 2022. Nonetheless, this lull in user activity is all the more reason for teams to continue their work on enabling greater cross-chain interoperability, unencumbered by the pressures of short-term market demand cycles. Whether this development is done specifically with scaling or composability in mind, the ability for siloed blockchains to communicate efficiently with one another remains a critical component of the future for a space that is becoming increasingly multi-chain over time.