Review and Outlook of the Public Chain Industry in 2024: From Technological Competition to Practical Applications

2024 marks an important turning point for the public chain industry, shifting the focus from technical competition to the practical implementation of applications. In this year, the market value of public chains grew by 105.3% to reach $2.8 trillion, with Bitcoin's price breaking the $100,000 barrier and achieving institutional-level adoption through ETFs. The Ethereum Layer 2 network expanded to over 200 chains, and Bitcoin Layer 2 TVL increased by 1,277.6%. These developments illustrate the industry's transition from technical experimentation to real-world applications.

Market Dynamics: Growth and Transformation

The public chain industry achieved significant growth in 2024, with multiple 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 decreased from 20.4% to 15.2%. The shares of BNB Chain and Solana remained stable at 3.5% and 3.3%, respectively, while other platforms accounted for 8.1%.

The DeFi sector also showed strong growth momentum in 2024, with the total locked value ( TVL ) reaching $10.28 billion at 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, with increases of 754.4%, 677.1%, and 321.3%, respectively. However, both Tron and Avalanche experienced declines in TVL.

The Ethereum Layer 2 ecosystem experienced significant centralization trends in 2024. A certain trading platform 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, 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 platforms together accounted for 79.1% of Ethereum L2 DeFi TVL, while previous competitors such as Blast, zkSync, and Starknet saw declines in their market shares.

Meanwhile, the ecosystem continues to expand, with 50 Rollups and 70 Validium & Optimium currently 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 the total locked value reaching $2.6 billion, a significant increase of 1,277.6% compared to 2023. Core leads with $790 million TVL, capturing 30.3% market share, followed by Bitlayer with $1.5 billion, holding a 19.4% share, and BSquared with $1.3 billion, accounting for 12.7% share. This growth is not only reflected in TVL but also in the number of active chains, which has more than doubled over the year, now totaling nearly 20 chains.

Competitive Landscape: Leaders and Challengers

In 2024, the competitive landscape of the public blockchain ecosystem has changed significantly, primarily characterized by the strengthening 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 April halving event, 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 the spot ETF 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 a certain oil company, becoming the seventh largest asset in the world, 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 all demonstrate an increasingly mature ecosystem. Cross-chain functionality has made progress through the integration of the BOB network with Optimism and the "Super Bitcoin" framework of BEVM, although standardization still faces challenges.

) Ethereum: Layer 2 Drives Ecological Evolution

2024 is a pivotal 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 amid the backdrop of Layer 2 adoption growth. The successful issuance of a spot ETF in July gained a certain 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 enhancing 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), the development of cross-L2 communication standards, and strengthening security requirements for Layer 2 solutions.

The Layer 2 ecosystem has shown significant growth and integration throughout the year. Notable new entrants 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 provider of settlement and security in a diversified 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 Jupiter airdrop in January, and the Solana ecosystem activities became unprecedentedly active. Solana established itself as a retail trading hub, fostering a vibrant meme and DeFi community. In addition to 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.

) 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's 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 features 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 impressively, with its token price surging by 461.6% and its market capitalization 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 the DeFi and gaming sectors, including the integration of Telegram games and the innovative development of the SuiPlay0X1 gaming console, showcasing its comprehensive strategy 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 certain trading platform has notably reduced the entry barrier for mainstream users through its user-friendly smart wallet. The platform gains substantial momentum from successful social applications like friend.tech and Clanker, while the popularity of memecoins further boosts activity on the Base chain. The implementation of the "Cancun upgrade" has significantly lowered transaction fees, increasing 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 ZK-based Layer 2; the NFT sector saw Pudgy Penguins launch Abstract; the Web3 platform Galxe introduced Gravity. Moreover, 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 Adoption: From Exploration to Strategic Integration

The way institutions participate has changed.

2024 marks a decisive shift for institutions from experimental blockchain initiatives to strategic implementation. Financial institutions are leading this transformation, with a certain asset management company's Bitcoin ETF rapidly reaching $20 billion in scale, and a certain payment platform expanding PYUSD to Solana. Tech giants are showcasing deeper involvement through innovative means: 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 Circle launching native USDC on Sui, and a certain payment company integrating Solana for settlement.

Institutional investment paradigm shift

The public chain sector demonstrated a strong recovery 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 pure infrastructure to application-oriented innovations. Early-stage investment events accounted for 21.4% of the total financing events, while Series A and B rounds made up 31.8%, reflecting an increasingly mature ecosystem.

The investment philosophy of venture capital has undergone a significant evolution, prioritizing user-oriented 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 technical competition to application innovation

The public chain industry underwent a fundamental shift in 2024, moving from a technology-driven to an application-driven strategy. This change challenged the previous industry mindset of "build it first, and users will naturally come." Despite significant improvements in technical capabilities, the increased network capacity has not directly translated into a corresponding user growth. For example, although "hardware" is limited, 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 a strategic shift in the ecosystem. Blockchain platforms are increasingly focusing on identifying specific user needs and building targeted solutions, rather than merely pursuing pure technological advancements. 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 field further reflects this shift towards application-oriented development. Initially purely speculative activities have evolved into effective user acquisition channels, particularly 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 purely 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 hope for improvement, especially in the United States. A clearer regulatory framework is expected to benefit the entire industry.