Bitcoin Asserts Itself On Layer 2: The Billions Are Piling Up!

With the explosion of Layer 2 solutions, competition between blockchains is intensifying. Ethereum has long dominated this scene, but Bitcoin is entering the fray. Layer 2 solutions offer ways to improve scalability and interoperability. In this intense landscape, Bitcoin seems determined to catch up, especially with the incredible growth of networks like Core and Bitlayer, which today capture over 56% of the total value locked.

Bitcoin boosted by its Layer 2s

The Bitcoin ecosystem, driven by the Proof-of-Work (PoW) mechanism, is witnessing a spectacular rise with the emergence of Layer 2 (L2) solutions. In 2024, these networks have garnered attention, accumulating $1.31 billion in Total Value Locked (TVL).

Among these networks, Core and Bitlayer dominate, capturing over 56% of this wealth. Core, in particular, has seen a tremendous 1,032% growth in the second quarter, reaching $387.94 million, or 29.46% of the total. Bitlayer follows closely with $358.75 million (27.24%).

The figures for 2024 illustrate this revolution:

• Core: $387.94 million in TVL;
• Bitlayer: $358.75 million;
• Rootstock: $158.18 million.

This rush towards L2s shows a growing demand for more efficient networks, especially in the face of Bitcoin’s (BTC) scalability challenges.

Blockchain: the race to billions

The boom of Layer 2s is not limited to Bitcoin. The phenomenon extends to the entire blockchain. Besides Core and Bitlayer, other projects are making their mark.

Rootstock, for example, although having seen its TVL drop from $163.75 million to $158.18 million, remains a major player. The same goes for Stacks, which has decreased from $141.93 million to $87.9 million.

Yet, L2s continue to evolve with a multitude of new options, now numbering 17, compared to just 9 at the start of the year.

This diversification indicates a clear trend: blockchain, constantly seeking solutions to its technical challenges, sees its protocols evolving at a rapid pace.

Furthermore, with the explosion of Layer 2s on Ethereum and the advancement of Bitcoin protocols, blockchain is experiencing a renaissance, raising concerns among some experts about the risks of fragmentation.