Layer 1: Activity report November 2024 (Ethereum, Solana, Sui, Aptos, Hyperliquid)

Financial Analysis of the Layer 1 Sector

Overview

November 2024 was simply exceptional for the cryptocurrency market. The results of the U.S. presidential elections were highly anticipated, and Donald Trump’s victory triggered a bullish rally. The Bitcoin (BTC) price surged from around $70,000 on November 5 to a new all-time high on November 22, reaching $99,600 (a 43% increase).

From November 22 onwards, BTC dominance dropped by approximately 7%, allowing altcoins to soar as well. The layer 1 blockchain sector, which had been relatively quiet since the beginning of 2024 (with a few exceptions), posted a performance of 46% in November. It’s worth noting that this performance is still lower than other major sectors (DeFi, Layer 2, AI, Memecoins).

Firstly, Ether (ETH) recorded a performance of 47.5% in November, closing around $3,700. The best performances were marked by Avalanche (AVAX) and Sui (SUI), which rose by 79.6% and 77.1%, respectively. Notably, Solana (SOL) gained 41.4% in November, ending the month at $238.1 after setting a new all-time high of $263.2.

November was also marked by the launch of the HYPE token by Hyperliquid through an airdrop of 31% of the supply to the community. The HYPE price surged from around $3 to over $10 within just a few days, reaching a market capitalization of over $3 billion.

Key Highlights

• Ether (ETH) finally woke up after several months of underperformance relative to the rest of the cryptocurrency market (+47.5% in November).
• Avalanche (AVAX) and Sui (SUI) delivered the best performances in November, with increases of 79.6% and 77.1%.
• Solana (SOL) set a new all-time high of $263.2 in November 2024, despite a slight pullback in the last few days of the month.
• Launched on November 29 at $3, Hyperliquid's HYPE token rose to $8.6 on November 30, marking a performance of 186%.

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Activity Analysis of Layer 1 Blockchains

General Overview

In November 2024, Ethereum continued to assert its position as the leader among layer 1 blockchains. With $189.9 million in total fees generated, the network saw a notable increase of 37% compared to October.

This increase is attributed to a sharp rise in transaction volumes, which jumped by 118.6%, along with a 13.9% growth in active addresses. This renewed activity can be linked to the resurgence of decentralized finance (DeFi) and the growing adoption of layer 2 blockchains.

For the first time since the deployment of the Dencun upgrade, blobs reached their saturation level, resulting in an increase in fees paid by layer 2 networks to Ethereum.

Regarding Solana, the network once again demonstrated its ability to capture users’ attention, continuing the trend of previous months. After experiencing over 200% growth in fee revenues in October, Solana recorded an impressive 171% increase in November, reaching $200.69 million.

Notably, this marks the first time Solana has surpassed Ethereum in terms of fees generated over a full month.

The number of active addresses also showed significant growth of 15.9%, while transaction volumes exploded, increasing by 142.7%. These performances align with the rising interest in memecoins, which continue to drive economic activity on the blockchain.

Conversely, as noted in October, Sui saw a 16.8% decrease in the number of active addresses in November. However, its transaction volumes increased by 67%, leading to a 52% rise in fees generated (reaching $1.65 million). These figures indicate a concentration of activity, likely around specific projects.

On Aptos, the number of active addresses climbed by 50.8%. Paradoxically, its fee revenues dropped by 17.7%, a decline that could be linked to lower average fees per transaction or an uneven distribution of network activity. Some observers attribute this to a rotation of users from Sui to Aptos, aiming to position themselves for a potential future airdrop (through low-value transactions).

Key Highlights

• Ethereum surpassed the $1 trillion volume mark (+188.6%) in November, reaffirming its position as the leader in the DeFi sector. This suggests that Ethereum continues to attract institutional investors and high-net-worth individuals.
• Ethereum's number of active addresses remains among the lowest (399,900 in November). High fees likely encourage smaller users to migrate to other blockchains.
• Solana attracted 6.7 million active addresses in November, 16 times more than Ethereum, but recorded volumes of $243.4 million, 4.4 times less than Ethereum. This suggests that the average transaction value remains modest.
• Despite impressive user engagement, Solana’s relatively low total transaction volume highlights its challenges in penetrating the high-value DeFi market, which is still dominated by Ethereum.
• PumpFun accounts for 31% of fees generated on Solana, explaining the network’s lower average transaction value.

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Fundamental Analysis of Layer 1 Blockchains

Total Value Locked (TVL)

In November 2024, Ethereum’s Total Value Locked (TVL) rose from around $54 billion to over $78 billion, a 44% increase. It’s worth noting that this is slightly below Ether’s price increase, indicating potential outflows to other networks.

Following the activity trends noted earlier, Solana’s TVL climbed by 73% in November. This increase surpasses Solana’s 41.4% price gain over the same period, reflecting significant inflows into the network. Notably, this allowed Solana to overtake its direct competitors, BNB Chain and Tron (up 18% and 12%, respectively, in November), to become the second-highest TVL blockchain, with $11.4 billion.

In parallel with the HYPE airdrop, Hyperliquid’s TVL experienced phenomenal growth of 92%, exceeding $1.27 billion. However, this does not account for the valuation of HYPE tokens, which currently exceeds $3 billion. This allowed Hyperliquid to surpass Aptos ($1.2 billion, +47%) and approach Sui ($1.52 billion, +37%) and Avalanche ($1.55 billion, +36%).

Inflow/Outflow

Capital flows between blockchains are a key indicator of current trends, providing insights into which networks are attracting or losing users and assets. These movements reflect investor and user preferences, whether for airdrop farming strategies or participation in DeFi protocols.

In November 2024, Solana recorded massive inflows of $875.3 million compared to outflows of $546 million. With a net positive flow of $329 million, the network confirms its growing appeal to investors, particularly due to the success of memecoins.

Sui and BNB Chain also posted positive net flows, amounting to $181 million and $54 million, respectively. The current market environment appears favorable for a DeFi resurgence, a sector that thrived in 2021 on BNB Chain and could experience another boom in the coming weeks.

Despite impressive inflows of $4 billion, Ethereum saw even greater outflows, resulting in a negative net flow of $990 million. This imbalance can be attributed to several factors:

• A migration to layer 2 solutions like Arbitrum or Optimism, where fees are lower.
• Diversification by users into other layer 1s like Solana, Sui, BNB Chain, or Hyperliquid.
• Potential profit-taking following the significant TVL increase on Ethereum.

Finally, Avalanche experienced a net negative flow of $40 million, marked by substantial outflows. This trend is likely due to the waning momentum of the BOOST campaign, which had temporarily stimulated on-chain activity.