State of MultiversX Q1 2025

Key Insights

• The Andromeda upgrade launched on public testnet on March 28, pushing MultiversX towards instant transaction finality by decentralizing block finalization and eliminating confirmation blocks.
• DeFi TVL increased by 18% QoQ to 4 million EGLD, though in USD, TVL decreased 43% QoQ to $66.5 million.
• Fees (EGLD) decreased by 14% QoQ to 4,000, and in USD decreased by 42% to $96,800 due to EGLD price depreciation.
• Liquid staking rate increased 40% QoQ to 14.0%, with 2 million EGLD staked across 3 protocols. Hatom Labs was the most popular protocol for liquid staking in Q1.
• On March 3, Hatom Labs launched USH, MultiversX’s first native overcollateralized stablecoin. Nearly $7 million in USH was minted within 24 hours, with $10.4 million in liquidity supplied across xExchange and AshSwap.

Primer

MultiversX (EGLD) is a blockchain platform focused on scalability, speed, and security for distributed applications and enterprise use cases. Founded in 2018 as Elrond, the company rebranded to MultiversX in November 2022.

The network operates on three core technologies: Adaptive State Sharding, Secure Proof-of-Stake (SPoS), and a WASM-based virtual machine compatible with multiple programming languages. These enable the network to process up to 30,000 transactions per second with 6-second latency. EGLD is the network’s native token for transaction fees, staking, and governance. The ecosystem supports applications across DeFi, gaming, NFTs, and payments.

The MultiversX ecosystem includes the blockchain mainnet (launched July 2020), xPortal wallet app, xExchange DEX, and xMoney fiat gateway. The project has established technical partnerships with Coinbase, AWS, Google Cloud, and Alibaba Cloud.

Website / X (Twitter) / Discord

Key Metrics

Financial Analysis

EGLD’s circulating supply increased by 1% QoQ to 28.2 million, with 94% of the total token supply unlocked at Q1 close. Annualized inflation decreased by 1% QoQ to 4.5%. On MultiversX, the sum of the transaction fees offsets EGLD inflation, meaning fewer tokens are minted. Consequently, Q1’s fees offset approximately 4,000 EGLD from being minted.

EGLD’s annualized real staking yield (staking APR minus inflation) increased by 19% QoQ to 2.8% in Q1, with staking APR at 7.3%. By the end of Q1, 66% of all eligible EGLD was being staked, up 18% from Q4.

In Q1, the price of EGLD declined 52% QoQ to $16.08 while MultiversX’s market cap declined 51% QoQ to $451.4 million as its market cap rank decreased from 103 to 107. The market cap of all L1s decreased by 18% QoQ, suggesting MultiversX was particularly susceptible to the crypto market decline.

On MultiversX, fees are paid through gas and tips (priority fees) spent on network transactions. MultiversX’s fees decreased by 42% QoQ to $96,800, while fees denominated in EGLD were up 14% to 4,000 EGLD. The decline in fees can be attributed to reduced network activity and a lower token price.

Developer rewards are a unique feature of the MultiversX ecosystem. Developers receive 30% off gas fees whenever someone calls their smart contract. Developer rewards declined 34% QoQ to $11,300, and 3% QoQ to 478 in EGLD.

Network Analysis

Usage

In Q1, average daily transactions decreased 20% QoQ to 301,400, while average daily active addresses declined 47% QoQ to 41,600. Last quarter, transactions and active addresses spiked on Dec. 12, 2024, following the listing of AI Nexus’s $A1X token. AI Nexus is an AI-focused gaming and metaverse app launched through xLaunchpad, MultiversX’s ecosystem accelerator.

The eStandard Digital Token (ESDT) is MultiversX’s native token standard that enables fast and cost-efficient transactions without relying on smart contracts. ESDT supports fungible, semi-fungible, and non-fungible tokens at the protocol level, leveraging sharding and directly storing balances in user accounts. In Q1, users created 611 new tokens, a 29% decrease QoQ. Of these, 20 were Meta ESDTs, which are tokens similar to standard fungible ESDTs but with additional customizable properties, such as built-in release schedules. XMEX, the time-locked token variant of xExchange’s MEX, is an example of a Meta ESDT.

MultiversX natively supports NFTs by embedding metadata and attributes into fungible ESDTs. The network classifies NFTs into non-fungible tokens (NFTs) and semi-fungible tokens (SFTs). Meta ESDTs are a subset of SFTs, differing primarily because SFTs include a Uniform Resource Identifier (URI), while Meta ESDTs do not. In Q1, new NFT creation decreased 24% QoQ to 134,100, while new SFT creation declined 46% QoQ to 28,200. XOXNO, MultiversX’s leading NFT marketplace, is notable for its onchain ticketing product, facilitating entry to xDay Munich, a MultiversX conference.

Total EGLD staked decreased by 3% QoQ to 14.9 million, while total EGLD staked denominated in USD decreased 53% QoQ to $239.4 million due to a 52% QoQ decline in the price of EGLD.

At the end of Q1, 108,300 addresses on MultiversX were staking to 3,300 different validators. According to MultiversX, 59% of validators were hosted in Europe, followed by 34% hosted in North America.

Andromeda Upgrade

The Andromeda Upgrade will mark the first major release in MultiversX’s two-step roadmap to enhance transaction finality. The upgrade addresses key inefficiencies in the network, such as confirmation blocks, slow cross-shard execution, small consensus groups, and complex cross-chain verification. Key updates from Andromeda will include:

• Equivalent Consensus Proofs: Andromeda introduces Equivalent Consensus Proofs, allowing any node in the consensus group to finalize a block by generating a proof separate from the block itself. This decentralizes finalization, removing the leader’s control. Other nodes can finalize the block if a leader fails or acts maliciously, ensuring consensus resilience. This will eliminate equivocation, which occurs when a block proposer finalizes two conflicting block versions with valid signatures from different consensus group subsets, causing forks or network instability.
• Removal of Confirmation Blocks: Pre-Andromeda, MultiversX requires confirmation blocks on execution shards and metachain to validate blocks post-consensus. Execution shards need a second block to confirm majority acceptance among 63/400 nodes, while the metachain (400/400 nodes) risks block reversion without confirmation, doubling finality time to 12 seconds (two 6-second blocks). Andromeda will remove these blocks, using Equivalent Consensus Proofs for instant finality, cutting the time to 6 seconds and boosting throughput.
• Optimize Cross-Shard Execution: Cross-shard execution refers to transactions involving accounts or applications across multiple shards. Pre-Andromeda, cross-shard transactions require six steps. Andromeda will reduce this process to three steps: (1) the source shard creates the block; (2) the metachain notarizes it; (3) the destination shard executes and finalizes the transaction immediately, as confirmation blocks are no longer needed. This cuts the process to 18 seconds (three 6-second blocks), doubling cross-shard execution speed and improving scalability for applications spanning multiple shards.
• Increases Consensus Participation in Execution Shards From 63 to 400: Pre-Andromeda, execution shards use a randomly sampled consensus group of 63 out of 400 eligible validators to sign each block. This reduces CPU overhead for signature verification, since verifying 400 signatures is resource-intensive, but it requires two rounds (two blocks, 12 seconds) to ensure majority agreement across the shard. Andromeda increases participation to all 400 nodes per round, using optimistic signature aggregation and KOSK (Knowledge of Secret Key) protection to manage the computational load. This ensures a single-round consensus (6 seconds) achieves majority agreement, eliminating the need for a second confirmation block, strengthening security, and reducing latency. This also ensures equal reward-earning opportunities and a fairer distribution among validators.

Andromeda launched on public testnet on March 28, with the team proposing a protocol upgrade governance vote the same day. The proposal passed on April 7, with 38% of voting power participating and 99% “Yes” votes. Following the Andromeda upgrade, MultiversX will have achieved instant transaction finality, 2x faster cross-shard execution, minimal equivocation risk, faster network propagation, and simpler cross-chain verification, laying the foundation for Supernova (sub-second finality and parallel execution).

Meta Transactions V3

Meta transactions, or relayed transactions, allow third-party relayers to pay transaction fees on behalf of MultiversX users. Meta Transactions V3 launched on mainnet Jan. 27, as part of the second Spica Upgrade patch (v1.8.9), introducing optional metadata inclusion in transactions, resulting in material gas savings. V3 builds on previous versions by removing relayed information from the transaction’s data field, reducing the computational overhead of handling that serialized data.

V3 also enhances security by integrating verification directly into MultiversX’s core protocol. It uses a simplified transaction structure with built-in nonce checks and signature validation, eliminating vulnerabilities from complex serialization and reducing the risk of replay attacks (when a malicious actor resubmits a valid transaction, risking loss of funds). MultiversX will phase out V1 and V2 standards once all applications have transitioned to V3.

Ecosystem Overview

DeFi

In Q1, TVL denominated in EGLD decreased 14% QoQ to 4.1 million, while in USD terms, TVL declined 43% QoQ to $66.5 million due to EGLD price depreciation (-52% QoQ). MultiversX’s DeFi Diversity score (the number of protocols comprising 90% of the network’s TVL) was 2, with Hatom and xExchange leading.

• Hatom Protocol, MultiversX’s leading lending platform, includes a liquid staking feature allowing users to receive liquid staking tokens representative of staked EGLD. Hatom’s TVL increased 12% QoQ to 2.6 million EGLD, representing 64% of MultiversX’s total TVL, a 3% increase in market share QoQ. Additionally, Hatom developed the TAO Bridge, enabling interoperability between MultiversX and Bittensor.
• xExchange, a DEX built by the MultiversX team, offers revenue sharing via its native token, MEX. Users stake MEX to receive xMEX, a locked version providing boosted rewards, fee distribution, governance rights, and launchpad allocations. The longer xMEX remains staked, the more Energy users accumulate, enhancing these benefits. xExchange’s TVL increased 27% QoQ to 1.2 million EGLD, accounting for 28% of MultiversX’s total TVL, up 5% QoQ.
• AshSwap, the second-largest DEX on MultiversX, uses stableswap algorithms for pegged assets and concentrated liquidity (similar to Uniswap V3) for volatile assets. Managed by AshDAO, AshSwap’s TVL grew 82% QoQ to 272,500 EGLD, the largest increase among dApps in Q1. AshDAO also manages AshPerp, MultiversX’s leading perpetual DEX, which had 19,500 EGLD in TVL, up 7% QoQ.

In Q1, MultiversX’s average daily DEX volume decreased by 9% QoQ to $2.4 million. Of the DEXs on MultiversX, xExchange had the highest DEX volume on MultiversX, averaging $2.4 million daily, a 100% QoQ increase. AshSwap increased 96% QoQ to $551,400. Volume surged in early March after Hatom launched USH, a new stablecoin that AshSwap enabled liquidity provision for via its stableswap product.

Liquid staking supply on MultiversX increased by 31% QoQ to 2 million EGLD (14% of staked EGLD). Liquid staking denominated in USD decreased by 45% QoQ to $29.5 million. Hatom was the top liquid staking protocol on MultiversX, with 1.8 million EGLD (12% of staked EGLD), equivalent to a 97% market share. MultiversX’s liquid staking rate increased 40% QoQ to 14.0%, suggesting that despite lower network activity, users are seeking greater productivity from their EGLD.

Stablecoins

MultiversX’s stablecoin market cap decreased by 8% QoQ to $13.0 million, ranking it 47th among all networks. On March 3, Hatom Labs launched USH, a MultiversX native, overcollateralized stablecoin. USH addresses MultiversX’s reliance on bridged stablecoins and fragmented stablecoin liquidity by introducing a native stablecoin. Users can mint USH through two facilitators: the Lending Protocol, offering fixed rates based on collateral, and Isolated Pools, where users deposit EGLD or sEGLD with no minting fees, leveraging Liquid Staking. USH’s stability is maintained via two peg mechanisms.

1. A Soft Peg Mechanism that values USH at $1 within the Lending Protocol, regardless of market price.
2. A Hard Peg Mechanism activates Redemption Mode if USH trades significantly below $1, allowing users to seize collateral to restore the peg.

Nearly $7 million in USH was minted within 24 hours of the token launch, with $10.4 million in liquidity supplied across xExchange and AshSwap to enhance market stability.

Ecosystem Growth

AI Initiatives

As outlined in its recent roadmap, the MultiversX Foundation will prioritize ecosystem development and integrating EGLD across various chains, starting with the AI sector.

Growth Games

In December 2024, MultiversX introduced Growth Games to encourage AI application development, inspired by AI Nexus’s success. The initiative includes a $1.5 million grant program focused on AI, DeFi, and other sectors, allocating $750,000 for new teams, $250,000 for existing teams, and up to $100,000 for advisory support for five xLaunchpad projects. By March 12, 2025, over 100 project proposals were submitted for participation.

ElizaOS Partnership

On Jan. 22, 2025, MultiversX partnered with ElizaOS to integrate onchain AI agents for wallet management and liquidity operations. Through this collaboration, MultiversX supports developers building AI-driven DeFi and governance dApps, providing resources for creating AI agents within minutes via Growth Games.

AI Hackathon

The month-long MultiversX AI MegaWave Hackathon launched on Feb. 12, hosted on DoraHacks. The hackathon offered a $150,000 prize pool and featured three tracks: AI Solutions, Autonomous Agents, and Warp Applications. Sponsored by partners like Alibaba Cloud and ElizaOS, the event combined hands-on development with learning resources and community support via Discord and Telegram. Winners from each track were announced on March 20, with project demos and details available on DoraHacks.

Other Key Developments

Several other key developments and initiatives took place in Q1:

• MultiversX launched WARPS (Jan. 3): WARPS enables blockchain actions anywhere via QR codes, allowing AI agents and users to interact with dApps.
• Pell Network announced lottery tickets for PELL token snapshot (Jan. 12): Users could buy tickets, but only winning tickets contained $PELL tokens. Winners were announced Jan. 17, and the token launched March 13.
• xPortal acquires Alphalink (Jan. 24): The acquisition brings Alphalink’s founders to xPortal, enhancing its DeFAI strategy.
• MultiversX participated in Pell Network’s raise of $3.5 million at a $75M valuation (Jan. 27): Pell raised $75 million to support its AI-driven DeFAI infrastructure, which addresses cross-chain operation challenges.
• MultiversX launches an AgentKit: (Feb. 11) The AgentKit, powered by ElizaOS, is an open-source framework for building custom AI agents in minutes on the MultiversX network.
• MultiversX launches SpaceKit, a Swift Smart Contract Framework: (Feb. 14): Swift was created by Apple and designed to be anyone’s first programming language. SpaceKit was created by a community developer (@gfusee33).
• Binance Pay partners with xMoney (Feb. 15): The collaboration enables crypto payments for goods and services, leveraging MultiversX’s infrastructure to target mainstream adoption.
• Animoca becomes a validator on MultiversX (Feb. 26) Animoca Brands will leverage its extensive portfolio within the MultiversX ecosystem as a validator and contributo.
• Pulsar Money became #1 trending dApp on DappRadar (March 5): Pulsar Money, a MultiversX-based dApp, reached 1 million transactions via its Social Pay feature. The milestone highlights Pulsar’s growth in social challenges and onchain rewards within MultiversX’s ecosystem.

Closing Summary

In Q1 2025, MultiversX implemented the Andromeda Upgrade on testnet, introducing enhancements like instant transaction finality, 2x faster cross-shard execution, and minimal equivocation risk. MultiversX also launched Meta Transactions V3 launched on Jan. 27 for improved gas efficiency. Network usage declined, with daily transactions down 20% QoQ to 301,400 and active addresses decreasing 47% QoQ to 41,600. Market cap declined 51% QoQ to $451.4 million, corresponding with a 52% QoQ EGLD price decline to $16.08, reflecting broader market conditions. Staking metrics showed resilience, with 66% of eligible EGLD staked, up 18% QoQ, though fees fell 42% to $96,800. MultiversX’s liquid staking rate increased 40% QoQ to 14.0%.

MultiversX advanced its strategic roadmap, emphasizing ecosystem growth and AI integration, with initiatives like the $1.5 million Growth Games grant program, the ElizaOS partnership for onchain AI agents, and the AI MegaWave Hackathon, alongside DeFi growth through Hatom’s USH stablecoin launch, with $7 million minted in 24 hours and $10.4 million in liquidity added. These efforts align with MultiversX’s vision to enhance blockchain infrastructure and lead AI-driven Web3 innovation. As the network navigates market headwinds and fosters new applications, its ability to leverage these upgrades and attract developers will be critical for long-term growth.

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