In the midst of the explosion of Layer 2 solutions, competition between blockchains is intensifying. Ethereum has long dominated this scene, but Bitcoin is entering the fray. Layer 2s offer solutions to improve scalability and interoperability. And in this hot context, Bitcoin seems to want to catch up, especially with the incredible progress of networks like Core and Bitlayer, which now capture more than 56% of the total value locked.
Bitcoin boosted by its Layer 2
The Bitcoin ecosystem, which is based on the Proof-of-Work (PoW) mechanism, is experiencing a spectacular rise with the rise of Layer 2 (L2) solutions. In 2024, these networks have captured attention, accumulating $1.31 billion in total value locked (TVL).
Among these networks, Core and Bitlayer dominatecapturing more than 56% of this manna. Core, in particular, saw a meteoric growth of 1,032% in the second quarterreaching $387.94 million, or 29.46% of the total. Bitlayer, meanwhile, follows closely with $358.75 million (27.24%).
The figures for 2024 bear witness to this revolution:
- Core: 387.94 million TVL;
- Bitlayer: 358.75 million;
- Rootstock: 158.18 million.
This rush towards L2 shows growing demand for more efficient networksparticularly in the face of the scalability challenges of Bitcoin (BTC).
Blockchain: the race for billions
The Layer 2 boom is not limited to Bitcoin. The phenomenon extends to the entire blockchain. Besides Core and Bitlayer, other projects are marking their territory.
Rootstockfor example, although having seen its TVL fell from 163.75 million to 158.18 millionremains a major player. The same observation applies to Stackswhich fell from 141.93 million to 87.9 million.
Yet, L2s continue to evolve with a multitude of new optionsnow numbering 17, compared to only 9 at the start of the year.
This diversification indicates a clear trend: blockchain, in constant search of solutions to resolve its technical challenges, sees its protocols evolve at a frantic pace.
In addition, with theLayer 2 explosion on Ethereum and the advancement of Bitcoin protocols, the blockchain is experiencing new momentum, raising concerns among some experts about the risks of fragmentation.
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