The public chain landscape is evolving. Ethereum holds the top position, but high transaction fees affect the user experience. Solana shines in high-frequency trading and NFTs, BNB attracts users from exchanges, the Ton chain is rising quickly, and SUI and Aptos are making rapid strides. Each public chain has its unique user base and metrics that influence token prices. Through on-chain data analysis, Solana emerges as the go-to for high-frequency traders, Ethereum continues to dominate DeFi, while BNB and Ton are gaining popularity. SUI and Aptos are drawing users with low costs, and SUI leads in daily active addresses. Investors can use metrics like NVA ratios and TVL to gauge whether token prices are justified.

Think the public chain hierarchy is set in stone? In reality, the landscape is quietly shifting.

Here’s the takeaway: Ethereum’s dominance remains intact, but its high fees are starting to wear on users. Solana continues to be a star in high-frequency trading and NFTs, while BNB thrives by leveraging Binance’s massive user base. The Ton chain, with its deep integration into the Telegram community, is on the rise, showing immense potential in terms of on-chain activity and capital inflows. Meanwhile, up-and-comers like SUI and Aptos are closing in fast, with speed and efficiency driving their progress.

The market waits for no one, and opportunities are fleeting. Each public chain has its unique user base, transaction frequency, and activity, and changes in these indicators will directly affect the performance of their token prices. In this article, we will provide a detailed analysis of the current situation of these six public chains through on-chain data, active addresses, transaction fees, total value locked (TVL), and other core indicators (as of October 14, 2024), to help you seize the next potential opportunity.

Overview of the Six Major Public Chains’ Ecosystems

To identify the next potential investment hotspot, it’s essential to first understand the current status of each major public chain:

• Ethereum (ETH): The first smart contract platform globally, considered the “big brother” of the public chain ecosystem. As of October 14, 2024, ETH is priced at $2,560. It remains the core platform for DeFi and NFTs, but high transaction fees discourage many average users.

• Solana (SOL): Known for high performance and low fees, Solana has attracted numerous NFT and DeFi projects with its lightning-fast transaction speeds. However, the chain still faces challenges with network instability that it must overcome.

• SUI: An emerging public chain, SUI focuses on efficient transactions and smart contract execution. It has recently been approved by Grayscale Trust, and its token price has reached a record high, demonstrating significant growth potential.

• Aptos (APT): Seen as the “next Solana,” Aptos has rapidly expanded its technology and ecosystem, attracting considerable interest from developers.
• BNB Chain (BNB): Thanks to Binance’s global user base, BNB enjoys high transaction volumes and an active user community. Its relatively low fees make it a favourite among investors.
• Ton: Created by the team behind Telegram, Ton chain has risen quickly, leveraging Telegram’s vast community. Its decentralized ecosystem and messaging capabilities have made it a standout in the Web3 community, with impressive on-chain metrics that are attracting more users and projects.

On-Chain Data Comparison – Uncovering Opportunities and Risks

We’ll analyze four key metrics: daily transaction volume, daily active addresses, transaction fees, and total value locked (TVL). These figures highlight each chain’s market performance and offer insights for investors.

1. Daily Transaction Volume vs. Transaction Fees

Daily transaction volume and transaction fees are core indicators of a chain’s activity and user experience. They reveal how frequently a network is used and the cost involved.

Solana: With 40 million daily transactions, Solana leads the pack due to its ultra-low transaction fees ($0.002 per transaction). This high-frequency trading environment is ideal for NFTs and DeFi, enabling users to make small transactions with ease. Solana’s low fees and high volume make it the top choice for high-frequency traders.

Ethereum (ETH): Ethereum processes 1.1 million daily transactions, but its high fees ($4 per transaction) remain a significant drawback. Despite this, Ethereum is still the preferred platform for high-value smart contracts and complex DeFi activities.

BNB: BNB handles 3.59 million daily transactions, with transaction fees of $0.003. Backed by Binance’s user base, BNB’s low fees and high volume make it especially popular with smaller investors.

Ton: Ton sees 4.5 million daily transactions, with fees of $0.005. While higher than Solana’s, Ton’s transaction volume and activity continue to grow, thanks to its integration with the Telegram community.

APT and SUI: Aptos and SUI have 2.7 million and 5.6 million daily transactions, respectively. Both chains offer low fees, drawing in a growing number of users.

2. Daily Active Addresses – Measuring User Engagement

Daily active addresses are a critical measure of how engaged a public chain’s users are and the overall activity on the network.

SUI: SUI leads with 6.56 million daily active addresses, driven by its recent strong price performance, with the token reaching a new high of $2.2. The growing interest from developers and investors alike has made it the fastest-growing public chain, with developer numbers rising by 64% over the past year.

BNB and Ton: BNB boasts 900,000 daily active addresses, while Ton has 450,000. Thanks to Telegram’s community, Ton is steadily attracting more users, particularly in the Web3 space.

Solana and APT: Solana and Aptos have 4.59 million and 5.6 million daily active addresses, respectively, benefiting from their low fees and strong transaction volumes.

Ethereum (ETH): Ethereum has the fewest daily active addresses, with just 300,000. Its user engagement largely comes from high-value smart contracts and DeFi activities.

3. Total Value Locked (TVL) – Gauging Liquidity

TVL reflects the liquidity and locked assets within a public chain’s ecosystem, often used to measure the maturity of DeFi and user trust in the platform.

Ethereum (ETH): Ethereum remains the undisputed leader in the DeFi space, with a TVL of $47 billion. The majority of DeFi protocols and NFT markets still choose Ethereum for deployment, solidifying its position in liquidity and user trust.

BNB: BNB has a TVL of $4.6 billion. Although lower than Ethereum’s, it maintains strong appeal among smaller investors, supported by Binance’s ecosystem and low fees.

Solana (SOL): Solana’s TVL is around $6 billion, a slight decrease due to network instability that caused some capital outflows. Nevertheless, Solana remains a significant player in the NFT space and retains an active user base in DeFi.

Ton and APT: Ton has a TVL of $400 million, while Aptos has $700 million. Both chains are seeing rapid growth, with APT benefiting from community support and innovative technical solutions. As more projects and applications are deployed, liquidity is expected to increase further for both Ton and Aptos.

SUI: According to DefiLlama data, the SUI network’s TVL has reached $1.13 billion, a historic high. SUI’s locked crypto assets now rank among the top 7 in the blockchain market. Among them, the lending protocol NAVI Protocol has a TVL of $493.65 million, up 1.41% weekly; the lending platform Suilend has a TVL of $256.38 million, up 13.41% weekly; and the lending protocol Scallop Lend has a TVL of $245.33 million, up 2.21% weekly.

Valuing Layer 1 Blockchains

Valuing Layer 1 public chains has always been a focus for the market. Unlike traditional finance, blockchain valuations are more complex and require a comprehensive assessment of both on-chain data and historical price trends. Here are some common methods used to evaluate whether a public chain’s token is overvalued or undervalued.

1. Network Value to Active Addresses (NVA) Ratio

The NVA ratio compares a blockchain’s market capitalization to its number of daily active addresses, assessing the value of each active user. It’s similar to the price-to-sales (P/S) ratio in traditional markets.

NVA=Market Cap/Daily Active Addresses

Analysis:

Aptos (APT) has a market cap of $5.2 billion and 5.6 million daily active addresses, resulting in an NVA ratio of 928. In comparison, SUI has a market cap of $6.1 billion and 6.56 million daily active addresses, with an NVA ratio of 929. This shows that the active user engagement and market cap for both APT and SUI are well aligned, suggesting that their prices are reasonably fair.

2. TVL to Market Cap (TVL/MC) Ratio

The TVL/MC ratio evaluates the relationship between a blockchain’s total value locked (TVL) and its market cap, indicating how efficiently capital is being used.

TVL/MC= Total Value Locked (TVL)/Market Cap​

Analysis:

SUI’s TVL is $1.13 billion, with a market cap of $6.1 billion, leading to a TVL/MC ratio of 0.186. Aptos, with a TVL of $720 million and a market cap of $5.2 billion, has a TVL/MC ratio of 0.139. This suggests that SUI’s TVL is growing faster than its market cap, indicating that its token might be undervalued.

Conclusion

Considering these valuation methods and on-chain data:

Solana, with its low transaction fees and high transaction volume, appears to be fairly valued.

Ethereum, despite leading in market share and liquidity, shows signs of being overvalued due to its high fees, resulting in a high NVT ratio.

Ton Chain, as an emerging platform, demonstrates great growth potential due to its strong community backing and innovative features. Investors should continue to track its TVL and user growth.

BNB maintains a healthy valuation due to its large user base and low fees.

Aptos and SUI are both in rapid growth phases, showing significant potential for future value.

The market moves quickly, and opportunities are fleeting. In this dynamic environment, accurately assessing each chain’s on-chain data and valuation is key to capitalizing on the next big opportunity.

Disclaimer:

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