Quant Review of Top L1 and L2 Solutions - April 2023 Edition

Introduction

The speaker introduces the topic of smart contract platforms and promises to provide data-driven insights on 12 key factors that will help determine which platforms are good or bad.

Introduction to Smart Contract Platforms

• The speaker welcomes viewers and introduces the topic of smart contract platforms.

• He promises to provide data-driven insights on 12 key factors that will help determine which platforms are good or bad.

Daily Transactions

The speaker discusses daily transactions as a key factor in evaluating smart contract platforms.

Evaluating Daily Transactions

• Daily transactions are an important factor in evaluating smart contract platforms.

• Ethereum is currently the leader in daily transactions, followed by Polygon Matic.

• Many other chains have seen a decline in daily transactions, including Optimism and Arbitrum.

Distance from All-Time High

The speaker discusses distance from all-time high as another important factor in evaluating smart contract platforms.

Evaluating Distance from All-Time High

• Distance from all-time high is another important factor in evaluating smart contract platforms.

• Newer chains tend to be closer to their all-time highs, while older names like Binance, Bitcoin, and Ethereum remain solid and not too far off their all-time highs.

• Chains that are too far from their all-time highs may be dead, while those that are too close may have less upside potential.

Adoption Scores

The speaker discusses adoption scores as a way to evaluate how quickly top chains are being adopted and growing.

Evaluating Adoption Scores

• Adoption scores are a way to evaluate how quickly top chains are being adopted and growing.

• Chains with a score of 1, such as ICP, H bar, Algorand, Harmony One, and Tezos, may not be good news.

• The top four chains in terms of adoption scores are Ethereum, Binance Smart Chain, Solana, and Polygon Matic.

Developer Activity

The speaker discusses developer activity as another important factor in evaluating smart contract platforms.

Evaluating Developer Activity

• Developer activity is an important factor in evaluating smart contract platforms.

• Ethereum has the most active developers by far, followed by Solana and Binance Smart Chain.

• Other chains like Avalanche and Fantom have seen significant increases in developer activity recently.

Market Cap

The speaker discusses market cap as another important factor in evaluating smart contract platforms.

Evaluating Market Cap

• Market cap is another important factor in evaluating smart contract platforms.

• Ethereum has the largest market cap by far, followed by Binance Smart Chain and Solana.

• Other chains like Avalanche and Fantom have seen significant increases in market cap recently.

TVL (Total Value Locked)

The speaker discusses TVL (total value locked) as another important factor in evaluating smart contract platforms.

Evaluating TVL (Total Value Locked)

• TVL (total value locked) is another important factor in evaluating smart contract platforms.

• Ethereum has the highest TVL by far, followed by Binance Smart Chain and Solana.

• Other chains like Avalanche and Fantom have seen significant increases in TVL recently.

Token Age Consumed

The speaker discusses token age consumed as another important factor in evaluating smart contract platforms.

Evaluating Token Age Consumed

• Token age consumed is another important factor in evaluating smart contract platforms.

• Ethereum has the highest token age consumed by far, followed by Binance Smart Chain and Polygon Matic.

• Other chains like Avalanche and Fantom have seen significant increases in token age consumed recently.

Social Engagement

The speaker discusses social engagement as another important factor in evaluating smart contract platforms.

Evaluating Social Engagement

• Social engagement is another important factor in evaluating smart contract platforms.

• Ethereum has the most social engagement by far, followed by Solana and Binance

Key Adoption Metrics

This section covers the key adoption metrics for various cryptocurrencies.

Daily Active Users

• Ethereum has the highest daily active users among smart contract platforms.

• Polygon (Matic) is a steady performer in terms of daily active users.

• Solana had a spike in April but has fallen down since then.

• Other platforms like Arbitrum and Red have seen spikes due to airdrops.

Daily Market Cap Growth

• Solana and Cardano are the fastest-growing chains in terms of market cap this year.

• Ethereum has the largest market cap, followed by Cardano and Solana.

Smart Contract Platform Market Cap Divided by Daily Active Users

• Polygon has the lowest market cap per daily active user, followed by Avalanche, Phantom, and Binance Smart Chain.

• Ethereum has the highest market cap per user due to its platform's versatility.

Developers

• Ethereum has nearly 40,000 sub ecosystems and repos per chain, making it the leader in developer activity.

• Polkadot and Solana follow closely behind with Cosmos Adam chasing up the rear.

Market Cap Divided by TVL (Total Value Locked)

• Arbitrum and Optimism have low values on this metric.

Blockchain Analysis: How to Quantitatively Analyze a Blockchain

In this section, the speaker discusses how to quantitatively analyze a blockchain and introduces the SCP (Smart Contract Platform) scorecard.

Categories for Blockchain Analysis

• Other names in the middle include near protocols, tazos, Solana, EOS, etc.

• Market cap over daily revenue is a new category that can be used to calculate daily revenue per chain in real-time.

• The ratio of market cap over daily revenue is calculated by dividing the actual market cap by daily revenue.

• Tron, optimism, and arbitrum are top three chains with low ratios.

• Ethereum, Phantom, Avalanche and Solana follow as next best options.

SCP Scorecard

• The SCP scorecard is a quantitative model used to analyze blockchains.

• The first, second and third places across all categories were calculated for each coin.

• Solana won three categories and came third four times making it the winner of the SCP scorecard.

• Polygon Matic came second with two seconds one first and one third place while Ethereum won three categories.

Conclusion

In this section, the speaker concludes his presentation on how to quantitatively analyze a blockchain using the SCP scorecard.

Final Thoughts

• This was a quantitative model that analyzed blockchains based on various metrics such as market cap over daily revenue.

• The results were presented in an SCP scorecard format where Solana emerged as the winner followed by Polygon Matic and Ethereum.

• The speaker encourages viewers to engage with him through comments or questions.