• Cartesi (CTSI) boosts DApp development with modular rollups, Linux-based computation, and scalable Layer 3 solutions beyond EVM limits.

  • Xai (XAI) integrates blockchain into gaming, offering AI-driven transparency, seamless in-game trades, and Arbitrum-powered efficiency.

  • Aavegotchi (GHST) fuses NFTs, DeFi, and gaming, enabling yield-generating assets, DAO governance, and trustless NFT lending on Polygon.

Layer-3 crypto projects are reshaping blockchain scalability, gaming, and DeFi. In Q1, Cartesi, Xai, and Aavegotchi stand out with cutting-edge innovations that push beyond Layer 2 limitations.

Cartesi(CTSI) Enhances Decentralized Application Development

Current price: $0.1257

Market cap: $107.35M

Cartesi created a modular development framework that streamlines the creation of decentralized applications (DApps). The Cartesi Machine, which operates on Linux, allows developers to integrate existing tools and programming libraries within blockchain applications.This approach removes the constraints of the Ethereum Virtual Machine (EVM) and enables more computationally intensive processes.

The project also introduces Cartesi Rollups, which function as Layer 2, Layer 3, or sovereign rollups, providing scalability while maintaining security from the base blockchain. Unlike traditional Ethereum-based DApps, Cartesi allows each application to operate with a dedicated CPU, reducing competition for processing power. The CTSI token supports staking through the Noether Proof of Stake system and enables governance participation, fostering a decentralized decision-making process.

Xai(XAI) Introduces Blockchain Solutions for Gaming

Current price: $0.152

Market cap: $156.27M

Xai focuses on integrating blockchain technology into the gaming industry by facilitating real economies within video games. The Xai system runs on Arbitrum, which is a Layer 2 solution for Ethereum to boost transaction efficiency and network scalability. Through its design the project eliminates the necessity of traditional cryptocurrency wallets and enables players to trade gaming items within the platform.

A key feature of Xai is its use of Explainable AI techniques, which improve transparency in automated trading systems. This innovation aims to increase user trust, particularly in in-game marketplaces. Additionally, Xai’s network allows individuals to operate nodes, earn rewards, and participate in governance, reinforcing the decentralized structure of the ecosystem.

Aavegotchi (GHST) Expands NFT Gaming and Governance

Current price: $0.7256

Market cap: $38.02M

Aavegotchi  NFTs represent digital assets using Aave-powered collateral which produce yield while operating on the Polygon platform. Each Aavegotchi possesses a unique value due to a combination of collateral stake levels and distinctive traits and universal network participation.

The Gotchiverse, Aavegotchi’s flagship game, allows players to explore, trade, and participate in play-to-earn mechanics. The ecosystem also introduces Gotchi Lending, a smart contract-based system that enables trustless NFT rentals. Additionally, GHST serves as the governance token within the AavegotchiDAO and has been integrated as collateral on Aave’s Polygon Market.