2024 Public Chain Industry Report: From Technological Competition to Application Implementation

The year 2024 is an important turning point in the development of the public chain industry, with the industry's focus shifting from technological competition to practical application. In this year, the market value of public chains grew by 105.3% to reach $2.8 trillion, and the price of Bitcoin broke through the $100,000 mark, achieving institutional-level adoption through ETFs. The Ethereum Layer 2 network expanded to over 200 chains, and the Bitcoin Layer 2 TVL increased by 1277.6%. These developments indicate that the industry is moving from the stage of technological experimentation to real-world application.

Market Dynamics: Growth and Transformation

The public chain industry achieved significant growth in 2024, with several key indicators showing an expansion trend.

The total market value of public chains increased by 105.3% to reach $2.8 trillion. Bitcoin's dominance rose to 69.8%, while Ethereum's share dropped from 20.4% to 15.2%. The shares of a certain trading platform's chain and Solana remained stable at 3.5% and 3.3%, respectively, while other platforms accounted for 8.1%.

The DeFi sector also shows strong growth momentum in 2024, with the total locked value (TVL) reaching $102.8 billion by the end of the year, a year-on-year increase of 88.6%. Among the top 10 public chains by TVL, Bitcoin and TON have the most significant increases, both exceeding 2,000%. Aptos, Sui, and Solana also performed well, with increases of 754.4%, 677.1%, and 321.3%, respectively. However, the TVL of Tron and Avalanche has decreased.

The Ethereum Layer 2 ecosystem experienced significant centralization in 2024. A certain DEX maintained its leading position with a TVL of $10.6 billion and a market share of 41.1%, a decrease from 50.8% in 2023. Base emerged as the dark horse of the year with a TVL of $5.8 billion and a 22.5% share, while Optimism ranked third with a TVL of $4 billion and a 15.8% share. These three platforms together accounted for 79.1% of the Ethereum L2 DeFi TVL, while previous competitors such as Blast, zkSync, and Starknet all saw a decline in market share.

At the same time, the ecosystem is continuously expanding, currently featuring 50 Rollups and 70 Validiums & Optimiums running on the mainnet, along with about 90 chains set to go live, bringing the total number of Ethereum L2s to over 200.

The Bitcoin Layer 2 and sidechain ecosystem has experienced explosive growth, with a total locked value (TVL) reaching $2.6 billion, a significant increase of 1,277.6% compared to 2023. Core leads with a TVL of $790 million, capturing 30.3% of the market share, followed by Bitlayer with $150 million and a 19.4% share, and BSquared with $133 million and a 12.7% share. This growth is not only reflected in the TVL, but the number of active chains has also more than doubled over the year, with nearly 20 chains currently in existence.

Competitive Landscape: Leaders and Challengers

In 2024, the competitive landscape of the public chain ecosystem has undergone significant changes, mainly characterized by the strengthening of Bitcoin's dominance, the resurgence of Solana, and the rise of emerging challengers.

( Bitcoin: From Store of Value to Financial Infrastructure

Bitcoin achieved remarkable growth in 2024, with a price increase of 129.2% and a market cap increase of 131.7%. This growth was driven by institutional adoption of spot ETFs, the April halving event, and positive sentiment following the U.S. elections. In addition to breaking the $100,000 price milestone, the Bitcoin ecosystem has two key developments:

Institutional Adoption Boost: The successful issuance of spot ETFs in January has completely changed the landscape for institutional access, with a certain asset management company's product scale rapidly reaching $20 billion. Bitcoin has surpassed silver and Saudi Aramco to become the world's seventh-largest asset, marking a shift from a speculative asset to a recognized store of value.

The Rise of BTCfi: The Bitcoin ecosystem has achieved expansion beyond price growth through innovative financial products. Babylon's Bitcoin staking project, Solv Protocol's cross-chain solutions, and Core's Fusion upgrade showcase an increasingly mature ecosystem. Cross-chain functionality has made progress through the integration of the BOB network with Optimism and the BEVM's "Super Bitcoin" framework, although standardization still faces challenges.

) Ethereum: Layer 2 Drives Ecological Evolution

2024 is a key year for Ethereum's transformation into a Layer 2-centric ecosystem. Despite a price increase of 55.8% to $3,744, Ethereum faces complex challenges in repositioning its role and maintaining relevance amidst the backdrop of Layer 2 adoption growth. The successful launch of spot ETFs in July gained some level of institutional recognition, but Ethereum's price performance has significantly lagged behind Bitcoin.

The Ethereum mainnet has achieved significant changes through the "Cancun upgrade," successfully reducing Layer 2 transaction costs and improving scalability. However, the migration of activity to Layer 2 has led to a decline in transaction fee revenue for Ethereum itself, sparking discussions about the long-term sustainability of Ethereum. The Ethereum Foundation has responded through various initiatives, including the implementation of Proto-Danksharding(EIP-4844), developing cross-L2 communication standards, and enhancing security requirements for Layer 2 solutions.

The Layer 2 ecosystem has shown significant growth and integration throughout the year. Noteworthy newcomers have enriched the ecosystem, including World Chain, Unichain from a certain DEX, and Sony's Soneium. This evolution highlights Ethereum's transition from a pure execution layer to a diversified provider of settlement and security in the Layer 2 ecosystem. Although there are still questions regarding revenue models and competitive dynamics, Ethereum's continued development in developer activity and innovation in scaling solutions demonstrates its adaptability.

( Solana: The Third Giant

2024 witnessed a strong comeback for Solana, with prices rising by 70.8% and market capitalization increasing by 90.9%. In November, the coin price broke through $260, setting a new historical high. This revival began with the January Jupiter airdrop, and the Solana ecosystem was exceptionally active. Solana established itself as a hub for retail trading, fostering a vibrant meme and DeFi community. Beyond meme culture, Solana made progress in several areas: re-staking protocols, modular Layer 2 solutions, and stablecoin innovations. The ecosystem further extended its influence through the expansion of SVM chains like Eclipse, Soon, Atlas, and Sonic.

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) The Rise of Emerging Forces: TON, Sui, and Base

TON: A Social Integration-Driven Platform for Growth

The Open Network (TON) showed significant growth in 2024, with Toncoin price rising by 149.6% and market capitalization increasing by 84.3%. The success of TON mainly stems from its deep integration with Telegram, effectively bridging the gap between traditional social networks and blockchain technology. The platform simplifies the crypto experience through Telegram wallet functionality and blockchain integration, providing millions of users with easy access to games, memes, and DeFi applications, establishing a model for large-scale adoption.

Sui: From Move Language Pioneer to Ecosystem Leader

Sui has performed remarkably, with the token price soaring by 461.6% and the market cap increasing by 1,363.8%. This success reflects the market's confidence in the development of Move language technology and its ecosystem. Sui focuses on DeFi and gaming sectors, including the integration of Telegram games and the innovative development of the SuiPlay0X1 gaming console, demonstrating a comprehensive layout for ecosystem growth. The platform's emphasis on user experience and protocol development has created positive network effects, attracting the joint participation of developers and users.

Base: Institutional Background Drives Rapid Growth

The significant growth of Base is driven by several key factors. A trading platform has significantly lowered the entry barrier for mainstream users through its user-friendly smart wallet. The platform has gained substantial momentum from successful social applications like friend.tech and Clanker, while the popularity of memecoins has further enhanced activity on the Base chain. The implementation of the "Cancun upgrade" has significantly reduced transaction fees, continuously increasing Base's appeal to developers and users.

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Major Trends in the Public Blockchain Industry for 2024

( New blockchain layers emerge endlessly

In 2024, project teams are launching their own public chains one after another. A certain DEX announced Unichain; the gaming platform Treasure DAO developed a ZK-based Layer 2; the NFT sector saw Pudgy Penguins launch Abstract; and the Web3 platform Galxe introduced Gravity. Moreover, the emergence of innovative new chains such as Monad, Berachain, and HyperLiquid reflects the shift of the public chain industry towards specialized blockchain infrastructure.

) Institutional Adoption: From Exploration to Strategic Integration

Change in Institutional Participation Methods

2024 marks a decisive shift for institutions from experimental blockchain initiatives to strategic implementations. Financial institutions are leading this transformation, with a certain asset management company's Bitcoin ETF rapidly reaching a scale of $20 billion, and a certain payment platform expanding PYUSD to Solana. Tech giants are demonstrating deeper involvement through innovative approaches: Sony launched the Soneium chain for entertainment applications, while a certain cloud service provider expanded its Web3 portal services. Infrastructure development is particularly noteworthy, with a certain stablecoin issuer launching native USDC on Sui and a certain payment giant integrating Solana for settlements.

Change in Institutional Investment Paradigm

The public chain sector is showing a strong recovery in 2024, with 174 financing events raising a total of $1.7 billion, an increase of 137.1% compared to last year. Notably, institutional investment strategies have shifted from pure infrastructure to application-oriented innovation. Early investment events account for 21.4% of the total financing events, while Series A and B rounds make up 31.8%, reflecting the increasing maturity of the ecosystem.

The investment philosophy of venture capital has undergone a significant evolution, prioritizing user-facing applications over traditional infrastructure development. This is reflected in the large investments in consumer-facing projects: Monad raised $225 million to optimize user experience, while Celestia and Berachain each secured $100 million for application-oriented infrastructure.

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) From technological competition to application innovation

The public chain industry underwent a fundamental transformation in 2024, shifting from a technology-driven to an application-driven strategy. This shift challenged the previous dominant industry mindset of "build first, and users will naturally come." Although technical capabilities have significantly improved, the increased network capacity has not directly translated into corresponding user growth. For example, despite hardware limitations, the Ethereum base layer has a higher "transactions per second" than most Layer 2 solutions, highlighting the complex relationship between technical capability and actual adoption.

This reality has prompted the ecosystem to make a strategic shift. Blockchain platforms are increasingly focused on identifying specific user needs and building targeted solutions, rather than pursuing pure technological advancement. This "find the user and then build" approach is reflected in several successful initiatives. The integration of social finance has become a particularly effective strategy, with TON's Telegram integration and Base's friend.tech demonstrating how familiar social platforms can drive blockchain adoption. By simplifying the user experience through account abstraction and familiar authentication methods, the entry barrier for mainstream users has been significantly lowered.

The evolution of meme culture in the blockchain space further reflects this shift towards application-oriented development. Initially purely speculative activities have evolved into effective user acquisition channels, especially on platforms like Solana and Base. These networks have successfully leveraged meme-related initiatives to drive ecosystem growth while fostering sustainable community engagement. The success of these user-centric approaches indicates that sustainable growth in the blockchain space increasingly relies on understanding and serving user needs, rather than merely advancing technological capabilities.

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2025 Outlook

As the blockchain industry shifts from technical experimentation to practical implementation, 2025 is expected to be a significant year of transformation.

) Regulatory Clarity

The regulatory environment shows significant improvement prospects, especially in