2024 Public Chain Industry Report: From Technical Competition to Application Innovation

2024 is a pivotal year for the public blockchain industry, with the focus shifting from technical competition to practical application. In this year, the market value of public blockchains grew by 105.3% to reach $2.8 trillion, Bitcoin's price broke $100,000, and institutional-level adoption was achieved through ETFs. The Ethereum Layer 2 network expanded to over 200 chains, and Bitcoin Layer 2 TVL grew by 1,277.6%. These developments illustrate the industry's transition from technical experiments to practical real-world applications. The public blockchain industry is undergoing a gradual shift from being primarily technology-driven to being primarily application-driven.

Market Dynamics: Growth and Transformation

In 2024, the public blockchain industry achieved unprecedented growth, with several key indicators showing significant expansion.

The total market value of public chains grew 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 BNB Chain and Solana remained stable at 3.5% and 3.3%, with other platforms accounting for 8.1%.

The DeFi sector is also showing strong growth momentum in 2024, with the total locked value ( TVL) reaching $10.28 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 saw the most significant increases, both exceeding 2,000%. Aptos, Sui, and Solana also performed well, growing by 754.4%, 677.1%, and 321.3% respectively. However, the TVL of Tron and Avalanche both experienced a decline.

The Ethereum Layer 2 ecosystem experienced significant centralization in 2024. A certain trading platform maintained its leading position with a TVL of $10.6 billion and a market share of 41.1%, down from 50.8% in 2023. Base emerged as the dark horse of the year, jumping to second place 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 major platforms together accounted for 79.1% of the Ethereum L2 DeFi TVL, while previous competitors such as Blast, zkSync, and Starknet saw declines in their market shares.

At the same time, the ecosystem is continually expanding, with 50 Rollups and 70 Validium & Optimium currently operating on the mainnet, plus 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 the market with $790 million TVL, holding a 30.3% market share, followed by Bitlayer with $1.5 billion, 19.4% share, and BSquared with $1.3 billion, 12.7% share. This growth is reflected not only in TVL but also in the number of active chains, which more than doubled over the year, with nearly 20 chains currently existing.

Competitive Landscape: Leaders and Challengers

In 2024, the competitive landscape of the public chain ecosystem has undergone significant changes, mainly characterized by the strengthened dominance of Bitcoin, 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 growth of 131.7%. This growth was driven by institutional adoption of spot ETFs, the halving event in April, and positive sentiment following the U.S. elections. In addition to breaking the $100,000 price milestone, there are two key developments in the Bitcoin ecosystem:

Institutional Adoption: The successful issuance of spot ETFs in January has completely changed the institutional access landscape, with a certain asset management company's product scale rapidly reaching $20 billion. Bitcoin has surpassed silver and Saudi Aramco to become the seventh largest asset in the world, marking a shift from 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 all showcase an increasingly mature ecosystem. Cross-chain capabilities have 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 transition to 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 growing adoption of Layer 2 solutions. The successful launch of spot ETFs in July gained a certain degree of institutional recognition, but Ethereum's price performance has notably lagged behind that of Bitcoin.

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

The Layer 2 ecosystem has demonstrated significant growth and integration throughout the year. Notable 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 Layer 2 ecosystem provider of settlement and security. Although there are still questions about revenue models and competitive dynamics, Ethereum's continuous development in developer activity and innovation in scaling solutions shows 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 Jupiter airdrop in January, leading to unprecedented activity within the Solana ecosystem. Solana has established itself as a retail trading hub, fostering a vibrant meme and DeFi community. Beyond meme culture, Solana has made progress in several areas: re-staking protocols, modular Layer 2 solutions, and stablecoin innovations. The ecosystem has further extended its influence through the expansion of SVM chains like Eclipse, Soon, Atlas, and Sonic.

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

TON: Social integration drives platform growth

The Open Network (TON) showed significant growth in 2024, with Toncoin prices 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 features and blockchain integration, providing millions of users with easy access to gaming, memes, and DeFi applications, establishing a model for large-scale adoption.

Sui: From Move Language Pioneer to Ecosystem Leader

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

Base: Institutional background drives rapid growth

The significant growth of Base is driven by several key factors. A trading platform has notably reduced 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 boosted activity on the Base chain. The implementation of the "Cancun upgrade" has significantly lowered transaction fees, continuously enhancing Base's appeal to developers and users.

Major Trends in the Public Chain Industry in 2024

New chains are emerging one after another

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 Layer 2 based on ZK; in the NFT sector, Pudgy Penguins launched Abstract; and the Web3 platform Galxe introduced Gravity. Furthermore, the emergence of innovative new chains such as Monad, Berachain, and HyperLiquid reflects the transition of the public chain industry towards specialized blockchain infrastructure.

Institutions Adopted: From Exploration to Strategic Integration

Changes 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 showcasing deeper involvement through innovative methods: Sony has launched the Soneium chain for entertainment applications, while a certain cloud service provider expands its Web3 portal services. Infrastructure development is particularly noteworthy, as a certain stablecoin issuer launches native USDC on Sui, and a certain payment giant integrates Solana for settlement.

Institutional investment paradigm shift

The public blockchain sector showed a strong rebound in 2024, with 174 financing events raising a total of $1.7 billion, a 137.1% increase compared to last year. Notably, institutional investment strategies have shifted from purely infrastructure-focused to application-oriented innovations. Early-stage investment events accounted for 21.4% of total financing events, while Series A and B rounds made up 31.8%, reflecting the growing 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.

From technological competition to application innovation

The public chain industry experienced a fundamental shift in 2024, moving from a technology-driven approach to an application-driven strategy. This shift challenged the previous dominant industry mindset of "build first, users will naturally come." Despite significant improvements in technical capabilities, the increased network capacity did not directly translate into corresponding user growth. For example, despite "hardware" limitations, the Ethereum base layer has a higher "users processed 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 integration with Telegram 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 reduced.

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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 building sustainable community engagement. The success of these user-centered approaches indicates that sustainable growth in the blockchain space increasingly relies on understanding and serving user needs, rather than purely advancing technological capabilities.

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Outlook for 2025

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

) Regulatory Clearance