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What is Etherlink?

Etherlink: An Overview

What Is Etherlink?

Etherlink is an EVM-compatible, non-custodial Layer 2 blockchain built using Tezos' Smart Rollup technology. It inherits the security and decentralization of Tezos Layer 1 while offering seamless compatibility with the Ethereum ecosystem (e.g., applications, tools, and wallets like MetaMask). Etherlink enables developers to deploy Ethereum-native dApps on the Tezos network with ultra-low transaction costs, fast confirmation times (~500ms), and robust censorship resistance1234.

Key Features

  • EVM Compatibility: Supports Ethereum tools, wallets, developer frameworks, and offers easy migration of smart contracts.
  • Scalability and Cost: Ultra-low fees (often around $0.001 per transaction) and sub-second finality, vastly improving cost and speed compared to mainnet Ethereum23.
  • Security & Decentralization: Inherits Tezos' L1 security, permissionless fraud proofs, and decentralized governance. The network is maintained by reputable validators, such as Exaion (backed by French energy giant EDF Group), enhancing its credibility5.
  • Decentralized Governance: Stakeholders can propose and vote on upgrades and parameters, ensuring transparent protocol evolution36.
  • Interoperability: Features built-in support for cross-chain connections via integrations like LayerZero and the Bifröst upgrade. Etherlink bridges assets and data across Tezos, Ethereum, and other major EVM-compatible chains3.

Ecosystem and Adoption

  • Launch & Adoption: Etherlink launched its mainnet beta in May 2024. Since then, it has rapidly grown, reaching over 8.6 million transactions and hosting 50+ active projects as of Q4 20247389.
  • DeFi & dApps: Notable protocols include DeFi platforms (IguanaDEX, SuperLend, Hanji), NFT marketplaces (Rarible), and Web3 gaming projects (“BattleRise”, "Sugarverse"). Etherlink's Apple Farm incentive program injected $3M in rewards, driving TVL (total value locked) from $1.4M to over $18M within months1011912+1.
  • Growth Metrics: Network activity soared—by Q3 2024, Etherlink L2 contributed up to 25% of Tezos' total network activity, with explosive growth in daily active addresses (up to 18,000, a 45,000% increase year-over-year) and smart contract deployments (11% of all new Tezos contracts on Etherlink in Q3 2024)141516.
  • Real World Assets (RWA): Integrations like Spiko’s tokenized T-Bills and Freename’s .etherlink domains highlight Etherlink’s expansion into RWAs and Web3 identity1718.

Major Upgrades

  • Calypso Upgrade: In March 2025, Etherlink introduced Calypso, boosting smart contract processing speeds by up to 30x and improving rollup storage and bridging to Tezos L191920.

Summary Table

FeatureDetails
LayerLayer 2 (Smart Rollup) on Tezos L1
EVM CompatibilityYes
SecurityInherits Tezos L1’s security, fraud proofs, decentralized
Transaction Cost~$0.001 per transaction
Typical Finality/Speeds~500ms confirmations, two-block finality
Key IntegrationsLayerZero, Bifröst, MetaMask, Rarible, SuperLend, IguanaDEX
Incentive ProgramsApple Farm ($3M+ rewards)
Ecosystem TVL (Apr 2025)Grew from $1.4M (late '24) to over $18M
Daily Active AddressesReached nearly 18,000 (Q3 2024)
GovernanceDecentralized, Tezos-style on-chain voting

Learn More

  • Etherlink is a fast-evolving Layer 2 ecosystem focused on EVM compatibility, low-cost scalable transactions, and democratized governance. Its growing adoption, strong technical upgrades, and robust validator support position it as a key part of Tezos’ scaling roadmap and an attractive home for Ethereum-compatible dApps and developers looking for high performance with strong security guarantees13105+4.
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