Decentralized finance (DeFi) dominated media headlines throughout 2022 and the sector, forth with nonfungible tokens (NFTs), helped to initiate the mass adoption of cryptocurrencies.

While loftier yields on staking and instant profits from flipping jpegs have proven to exist very lucrative for investors, it'due south important to remember that none of it would have been possible without the underlying capabilities of smart contract engineering.

The Ethereum network remains, hands-down, the most widely used layer-ane smart contract platform in the crypto ecosystem, but anybody knows well-nigh the loftier fee and clogged network problems of the past few years.

In 2022, competing networks like Avalanche and Binance Smart Chain enabled compatibility with the Ethereum Virtual Automobile (EVM) and this produced positive outcomes for investors in both ecosystems.

Let's have a await at a few of the top-performing layer-one protocols in Q4 2022 and investigate how partnerships, investment from traditional finance and protocol developments might benefit each project in 2022.

Algorand

Algorand (ALGO) is a pure proof-of-stake (PoS) layer-1 blockchain network designed to be cocky-sustaining and highly scalable, thus making it capable of handling heavy transaction loads for minimal costs.

In Q4, the protocol launched the Algorand Virtual Machine which enabled decentralized applications (DApps), pregnant DeFi and NFT projects could now operate on the network.

Tether (USDT) and USD Coin (USDC) had previously launched on the network, so their integration into new DeFi platforms was relatively effortless, allowing for the quick build up of liquidity. The launch of the 150 1000000 ALGO Viridis Fund by the Algorand Foundation was also designed to accelerate the development of the DeFi ecosystem on the network.

The project also attracted the attention of institutional investors, and a sizable cash infusion came from Borderless Capital who launched a $500 one thousand thousand fund to help develop DApps on Algorand. Hivemind Capital Partners besides selected the protocol as its first technology partner.

In October, Algorand launched governance features that enabled ALGO holders to have a say in the future development of the protocol.

ALGO/USDT one-day chart. Source: TradingView

On Nov. 18, 21Shares announced the launch of a physically-backed Algorand exchange-traded production which helped spark a rally in the toll of ALGO to a yearly loftier at $2.99.

Tezos

Tezos (XTZ) is a flexible proof-of-stake blockchain designed to evolve over fourth dimension without the need to undergo hard forks. In Q4, traditional finance entities like the Arab Bank Switzerland partnered with the protocol to launch staking, trading and custody services for the project'southward native XTZ token.

On Dec. 7, the project made headlines afterward information technology expanded its NFT ecosystem by partnering with Ubisoft, a major gaming company. The Ubisoft Quartz platform uses Tezos blockchain, and the players of Ghost Recon: Breakpoint will exist able to purchase and trade game-specific NFTs in the marketplace.

On Dec. 15, Rarible, a popular NFT marketplace, as well announced the integration of the Tezos blockchain into its ecosystem. This means Rarible users tin buy, sell and merchandise Tezos NFTs in an environs that is much cheaper than Rarible's Ether-based market.

Function of the reason for the increased attention on the Tezos blockchain is the free energy efficiency of the network in a world that is condign increasingly focused on ecology sustainability.

According to a recent carbon footprint written report from PricewaterhouseCoopers Informational SAS, the Tezos network saw a 70% increase in energy efficiency in 2022, with its almanac energy consumption at present estimated to be roughly the same as the carbon footprint of just 17 people.

XTZ/USDT 1-day nautical chart. Source: TradingView

At the time of writing, XTZ is trading at a cost of $four.34 later on hitting a yearly high of $9.17 on October. 3. This was merely prior to the wider marketplace downturn that has put pressure level on prices beyond the crypto ecosystem as the market place heads into the terminal weeks of 2022.

Related: 'I'thou a huge believer in crypto technology,' says onetime US SEC chair

Elrond

Elrond (EGLD) is a blockchain platform for distributed apps and enterprise-level businesses that has the goal of condign the technology ecosystem for the "new internet."

According to the project'south website, the network utilizes sharding engineering science to enable the processing of 15,000 transactions per 2d (TPS) with an average transaction price of $0.001.

The late-year price rally seen in the protocol's native EGLD token came after the launch of a $1.29 billion liquidity incentive program by the Elrond-based Maiar decentralized exchange (DEX).

EGLD/USDT one-day chart. Source: TradingView

Prior to the launch of the liquidity program, the price of EGLD was on the rising cheers to its increased utilise as a form of digital payment, including a partnership with the Romanian music festival Untold, which announced that tickets for its 2022 festival could be purchased using EGLD.

Want more than information about trading and investing in crypto markets?

  • Here's why Algorand'due south price only rallied to a new multi-year high
  • three reasons why Tezos (XTZ) price bankrupt its downtrend with a 50% rally
  • Swiss B2B bank InCore launches new tokenization tool using Tezos
  • Three reasons why the price of Elrond (EGLD) is striking new daily highs
  • Rarible integrates with Tezos blockchain and launches ain NFT drove

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