Tezos Q4 2024: A Year-End Surge and What’s Next in 2025

The full report is available here. Below, we break down the key takeaways, from revenue growth to network expansion, governance updates, and the growing role of Layer 2 solutions like Etherlink.

Revenue and Economic Growth

Tezos ended 2024 on a strong note, posting impressive growth in transaction fees and market capitalization:

• 30.4% increase in Tezos Layer 1 revenue from transaction fees (90.8% growth in USD terms).

• 94% increase in Tezos' market capitalization, reaching $1.3 billion by the end of Q4.

• XTZ’s circulating supply at 1.0 billion tokens, with Adaptive Issuance continuing to refine inflation control.

The growth in transaction fees suggests heightened network activity, while the surge in market capitalization reflects increased adoption and demand for Tezos. The Adaptive Issuance mechanism, first introduced in the Paris upgrade, is playing a crucial role in balancing staking incentives while keeping inflation in check.

Tezos Network Activity and Adoption

Q4 saw a shift in activity, with Layer 2 solutions like Etherlink absorbing more traffic, allowing Layer 1 to focus on security and governance:

• 5,800+ new contracts deployed on Tezos Layer 1, marking an 18% increase QoQ.

• Etherlink saw a massive 184% increase in contract deployments, with over 1,700 new contracts deployed.

• 37% increase in daily active addresses (DAA) on Layer 1, averaging 1,800 unique addresses per day.

• 485,000+ transactions per month on Etherlink, accounting for 18% of Tezos L1’s transaction count.

While total transaction volume on Layer 1 slightly declined (down 5%), the shift toward Layer 2 is expected as Etherlink offers faster, lower-cost transactions. Etherlink’s rapid adoption within six months of its launch highlights its potential to become the go-to scaling solution for Tezos.

Quebec Upgrade and Tezos Governance in Action

The Quebec protocol upgrade was one of the biggest stories in Q4. Officially activated on January 20, 2025, Quebec brought a series of refinements to Tezos' staking system and block validation process.

Key upgrades include:

• Block time reduced from 10 seconds to 8 seconds, improving transaction speeds.

• Changes to staking weight, reducing the influence of delegated funds from 50% to 33% to promote more direct staking.

• External stake limit increased from 5x to 9x, allowing bakers to attract more stake.

• Refinements to Adaptive Issuance to prevent excessive tez issuance when the staked ratio is slightly below the target.

These changes improve network efficiency and encourage greater participation in staking, while keeping inflation under control.

And with Quebec now fully operational, the Tezos community is turning its attention to Proposal ‘R’—the next protocol upgrade currently undergoing feedback discussions on Tezos Agora.

Development and Builder Adoption

Q4 showed strong developer engagement, with over 167 monthly active developers and a significant increase in smart contract activity.

• Tezos GitHub repositories exceeded 3,600, with steady growth in developer participation.

• Jstz (JavaScript Rollup) is in active development, expanding Tezos' compatibility with JavaScript-based smart contracts.

• Etherlink governance went live, establishing a structured voting process for L2 upgrades.

• Multiple Octez updates focused on performance improvements, including faster block propagation and enhanced security measures.

The momentum around Tezos X, the long-term vision for enhanced scalability and composability, continues to build. By integrating Smart Rollups, the Data Availability Layer, and multi-language support, Tezos is positioning itself as a developer-friendly, high-performance blockchain.

Ecosystem Growth: Real-World Assets, Gaming, and NFTs

Gaming, DeFi, and real-world asset (RWA) tokenization saw major progress in Q4.

Real-World Asset Tokenization

• Uranium.io launched on Tezos, enabling fractionalized ownership of uranium.

• Transak partnered with Uranium.io, allowing users to buy tokenized uranium with crypto or credit cards for as little as $10 (compared to the previous $4.2 million minimum investment).

• Electis integrated Tezos blockchain for digital voting in 60,000 French schools.

Tezos continues to stand out in RWA tokenization, proving its suitability for institutional and high-value asset applications.

Gaming Expansion

• Etherlink integrated with Rarible, launching BattleRise Founder Pass as the first gaming NFT on the network.

• Sugarverse and Stables Games expanded, leveraging Tezos for in-game economies.

• Tezos Unity SDK development gained traction, making it easier for game developers to build on Tezos.

Gaming remains one of the fastest-growing sectors within Tezos, with Etherlink providing the necessary scalability for large-scale Web3 gaming applications.

NFTs and Digital Art

• NFT sales volume hit $773,000, with 2,800 weekly active addresses on Objkt.

• Tezos was featured at Paris Photo and Miami Art Week, showcasing digital art on a global stage.

• Agoria and InfiniteInk created a generative AI music NFT, marking the highest-ever Tezos music sale (8,500 XTZ).

Despite a 12.2% drop in NFT sales, Tezos continues to dominate the digital art scene, reinforcing its role as a platform for artists and collectors.

DeFi Growth and Stablecoins on Tezos

While DeFi activity saw some shifts, Etherlink provided new opportunities for liquidity movement.

• Total Value Locked (TVL) reached $53 million, a 6% increase QoQ.

• Etherlink DeFi protocols doubled their TVL to $1.5 million as liquidity moved from L1 to L2.

• IguanaDEX saw $25.5 million in trading volume, leading Etherlink’s DeFi sector.

• Stablecoin adoption grew, with Tether’s USDT on Tezos surpassing $37.2 million in circulation.

Etherlink’s Ethereum compatibility is attracting more DeFi developers, and as Tezos X progresses, we can expect more liquidity and new financial instruments to emerge.

Looking Ahead: What’s Next for Tezos?

With Quebec now fully integrated and Proposal ‘R’ taking shape, 2025 is already shaping up to be another big year for Tezos.

Here’s what’s coming next:

• Finalization of Proposal ‘R’, with governance discussions ongoing on Tezos Agora.

• Further adoption of Etherlink, with more gaming, NFT, and DeFi projects launching.

• JavaScript Rollup (Jstz) development, expanding Tezos' developer ecosystem.

• Advancements in the Tezos X roadmap, with interoperability and scalability improvements.

The Q4 2024 Messari report underscores that Tezos remains one of the most dynamic blockchain ecosystems, driven by governance, scalability, and real-world adoption. With a strong foundation in place, Tezos is set to expand even further in 2025.

That wraps up this deep dive into the latest Messari report. With so much happening in the ecosystem, what are you most excited about for Tezos in 2025?

Save the Date: TezDev 2025

Last year, TezDev brought the Tezos community together in Brussels for a day of insightful talks, developer meetups, and big ideas like Tezos X. This year, we’re taking it to EthCC in Cannes—and you won’t want to miss it!

🗓 July 3, 2025
📍 Cannes, France

Sun, Tezos, and good company—what more could you ask for? More details soon, but for now, mark your calendars!

This Week in the Tezos Ecosystem

Checking out what else is happening in the Tezos ecosystem this week, Tezos Town Hall #6 brought together creators, curators, and builders for a deep dive into the evolving landscape of digital art on Tezos. The discussion featured a lineup of key figures from the space, including Adi Phil Zufall (Co-Founder & CEO, IINK), Jorion (Co-Founder & COO, IINK), Kika Nicolela (Artist & Head Curator, objkt), Aleksandra Art (Head of Arts, Trilitech), MEK.txt (Artist, Designer, Dev, SBJKT), Murat Otunc (Co-Founder & CCO, IINK), and Timothy Mc Alister (Co-Founder & COO, objkt), with Vinciane Jones (Art Partner Manager, Trilitech) moderating the conversation.

The panel covered the current state of digital art on Tezos, how platforms like objkt and IINK are expanding opportunities for artists, and what makes Tezos a standout ecosystem for on-chain creativity. They also shared insights on how the artist community continues to grow, the role of curation in shaping digital collections, and what the future holds for blockchain-powered art. With Tezos remaining a hub for experimentation and new artistic models, this discussion provided valuable perspectives on where things are headed next.

If you missed it, you can catch the full recording here:
📍 Watch on YouTube
📍 Check the recap on X

The latest Tezos Foundation Biannual Report is here!

Showcasing 9 months of amazing activity on Tezos, including new milestones in Gaming, Arts & Culture, and DeFi, this report highlights key advancements shaping the ecosystem.

Events

Arthur Breitman to Speak at NFT Paris

Mark your calendars for February 13-14, 2025, as Tezos co-founder Arthur Breitman takes the stage at NFT Paris. Held at the iconic Grande Halle de la Villette, this event promises to explore the cutting edge of tokenization and real-world asset (RWA) management.

Arthur’s keynote:
"Tokenization & Asset Management: Unlocking the Power of Real-World Assets"

Key highlights include:

• Insights into Uranium.io, a newly-launched project in tokenized uranium ownership on Tezos.

• The role of Tezos in bridging real-world assets with blockchain.

• Broader discussions on how RWAs are reshaping asset management and financial systems.

This event is part of RWA Paris, hosted alongside NFT Paris, Ordinals Paris, and XYZ Paris, showcasing the intersection of blockchain technology, art, and finance.

📍 Location: Grande Halle de la Villette, Paris
📅 Date: February 13-14, 2025
🎤 Stage: RWA Stage

For more details, visit here.

The White Box Reception at Galerie Data – Exploring AI & Art on Tezos

📅 Date: February 13, 2025
⏰ Time: 5:00 PM - 9:00 PM GMT+1
📍 Location: Galerie Data, 26 Bd Jules Ferry, 75011 Paris
🎟️ RSVP: Register Here

Art, AI, and blockchain converge in The White Box, a new exhibition at Galerie Data curated by ClownVamp, featuring seven artists exploring the shifting role of neutrality in an AI-driven world. This exhibition, which opened on January 30th, showcases a mix of 1/1s and editions, all set to drop on Objkt on February 13th.

The show features a stellar lineup of AI-driven artists, including:

• Kevin Esherick (Tezos genesis mint)

• Katie Morris (Tezos genesis mint)

• Jess Mac

• Mihai Grecu

• Fantastic Planet

• Rabbunnitt

• Marco De Angelis

Join us on February 13th during NFT Paris for a special reception celebrating this exhibition. This is a perfect opportunity to meet the artists, engage with fellow collectors, and experience how Tezos continues to empower the next wave of digital art.

Can’t make it to the reception? You can still visit Galerie Data during regular gallery hours: Thursday to Saturday, 2 - 8PM.

📌 Don’t miss this moment in Tezos art—RSVP now: Register Here

🔴 Now Streaming: Advancing Tezos X with Nomadic Labs’ Ben Fuentes

This week on TezTalks Live, we’re joined by Ben Fuentes, Developer Relations Specialist at Nomadic Labs. Ben dives into the development of Tezos X, the potential of JsTz and Etherlink, and how these innovations are shaping the future of the Tezos ecosystem.

🌟 Our special guest is Ben Fuentes, connecting developers and builders with the tools they need to succeed in Tezos.

🔍 In this episode, we’ll explore:

Nomadic Labs’ Role: - How this leading R&D team drives Tezos’ growth in Europe and beyond.

Tezos X & Etherlink: - The shift toward Layer 2 functionality, its benefits for scalability, and Etherlink’s pivotal role in bridging Tezos with Ethereum.

JsTz Development: - Insights into the Javascript runtime, its use for web developers, and its journey toward production readiness.

Builder Benefits: - Discover how Tezos X opens doors for Solidity and web developers, offering accessible and cost-effective solutions.

Looking Ahead: - Updates on JsTz, Etherlink’s DAL, and what Nomadic Labs has planned for 2025.

Watch the full episode on YouTube.