September ‘24 L1 Landscape Recap

Crypto markets rebounded in the last month of Q3 after most Layer 1 (L1) blockchains saw their valuations decline late into the summer. The U.S. Federal Reserve’s decision to cut interest rates in mid-September brought a fresh wave of investor optimism to both equities and crypto, with the price of Bitcoin rising from ~$58.2k to ~$63.2k between September 16th and October 1st to close the month with a gain of ~10.5%. This renewed market sentiment also had a noticeable impact on other sectors of the crypto ecosystem, particularly L1s. In this recap, we examine the broader L1 landscape in September through the context of valuations, total value locked (TVL), stablecoins, and network activity. 

L1 valuations rose across the board in September, with the majority making a partial recovery off their lows from August. The top three largest smart contract platforms by market cap, Ethereum, BNB Chain, and Solana, saw modest month-over-month (MoM) gains of ~3.4%, ~6.4%, and ~13.1%, respectively. Ethereum’s performance lagged behind its L1 competitors, particularly notable after it led the sector with a steep 22.2% drawdown in August.