In the ever-evolving world of blockchain technology, the recent developments within Tezos and its remarkable 17th upgrade, dubbed Quebec, have set the stage for both exciting advancements and noteworthy challenges in
2025.
As the Tezos ecosystem adapts to changing demands and focuses on innovation, the introduction of quicker block times and refined staking rewards showcases its commitment to improvement.
Meanwhile, the rise of Etherlink, a Layer 2 solution, signifies a prominent shift in user behavior and transaction dynamics, highlighting the growing appeal of scalability and efficiency.
In this article, we delve deeper into the implications of Quebec's updates on Layer 1, explore Etherlink's extraordinary growth trajectory, and analyze the broader impacts on the Tezos network.
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Key Takeaways
- Tezos' Quebec upgrade reduced block times to 8 seconds and improved staking rewards through Adaptive Issuance.
- Despite Tezos Layer 1 facing a decline, Etherlink achieved remarkable growth with $10.8 million in total value locked and
1.4 million monthly transactions. - The ongoing shift towards Layer 2 solutions like Etherlink highlights users' preference for faster and more efficient transaction processing.
Overview of Tezos 17th Upgrade: Quebec
## Overview of Tezos 17th Upgrade: Quebec In the first quarter of 2025, Tezos made significant strides with its 17th protocol upgrade, aptly named Quebec.
This latest enhancement not only reduced block times to an impressive 8 seconds but also optimized staking rewards through a novel mechanism known as Adaptive Issuance.
Although the overall usage of Tezos Layer 1 saw a decline of
27.3%, the introduction of Etherlink, a Layer 2 solution, marked a notable turning point in transaction dynamics.
Etherlink averaged an astounding
1.4 million monthly transactions, outpacing Layer 1 for the first time in transaction fees—collecting 10,302 XTZ against 8,500 XTZ from Layer
1.
Moreover, Etherlink's total value locked skyrocketed by 6,200% from the previous quarter, reaching $10.8 million, fueled by robust DeFi incentives and the integration of real-world asset deployments.
Additionally, validator stakes saw an uptick of
9.5%, elevating the total to 97 million XTZ.
Preparations also continued for implementing the Data Availability Layer introduced during the previous Paris upgrade, emphasizing efforts to foster heightened validator participation to secure the necessary threshold.
Financial metrics indicated a decline in Layer 1 transaction fees by
23.3% quarter over quarter, underscoring the scaling advantages of Etherlink.
Despite these developments, Tezos' market capitalization plummeted by
48.4% primarily due to a downturn in XTZ prices, reflecting broader trends in the cryptocurrency market.
Overall, while Layer 1 activity on Tezos waned, the rise of Etherlink illustrates a clear migration of users seeking enhanced transaction efficiency.
The Quebec upgrade thus represents a pivotal enhancement, showcasing Tezos' commitment to faster transaction capabilities, improved staking frameworks, and a reinforced approach to decentralized governance and economic resilience.
The Rising Success of Etherlink in 2025
The success of Etherlink can largely be attributed to its pioneering role in addressing the scalability challenges that traditional Layer 1 networks face.
By operating as a Layer 2 solution on the Tezos blockchain, Etherlink not only provides faster transaction speeds and reduced fees but also capitalizes on the current demand for decentralized finance (DeFi) applications.
Its impressive surge in adoption, with
1.4 million monthly transactions, demonstrates a clear shift among users towards platforms that can offer timely, efficient, and cost-effective transactions.
Furthermore, the innovative DeFi incentives and real-world asset integrations played a critical role in boosting Etherlink's total value locked, jumping to $10.8 million, a significant increase that reflects growing trust and investment in Layer 2 scaling solutions.
These factors combined suggest that while Layer 1 may be experiencing declines, the future lies with versatile and responsive systems like Etherlink, capable of supporting the evolving needs of the DeFi landscape.
By Wolfy Wealth - Empowering crypto investors since 2016
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