Bitcoin layer two (L2) solutions and sidechains have gained incredible traction this year, with the top ten Bitcoin-based sidechains or L2 protocols now controlling a combined $1.31 billion in value locked (TVL). The latest figures show that over 56% of this total is held in two prominent networks: Core and Bitlayer.

Core and Bitlayer Dominate Bitcoin-Centric Protocols, Holding 56% of Value

Over the past few months, a significant portion of value has flowed into these Bitcoin-centric L2 networks and sidechains. Data from defilama.com shows that the top ten Bitcoin-based protocols collectively hold $1.31 billion. As of this writing, TVL represents 1.65% of the $79.46 billion locked across all decentralized finance (defi) chains. Among the top contenders, several have seen significant growth over the past quarter, with Core seeing a 1,032% increase in Q2 alone.

Core, a network that combines features from Bitcoin and Ethereum, leads with $387.94 million locked as of September 18, accounting for 29.46% of the total. Bitlayer is close behind, securing $358.75 million, or 27.24%. Rootstock is third with $158.18 million (12.01%), while Merlin follows with $138.73 million. Bsquared completes the top five with $95.54 million.

Other notable projects include Stacks ($87.9 million), BOB ($35.5 million), Bouncebit ($26.15 million), MAP Protocol ($20.18 million), and Interlay ($2.83 million). BEVM is just behind Interlay, with a TVL of $2.61 million. The rest of the protocols in this space all hold less than $1 million. Earlier this year, the landscape was quite different, with Rootstock and Stacks leading the way, holding 50.34% and 43.63% of the total value at the end of February 2024, respectively.

Rootstock’s TVL was $163.75 million on February 27, but has since dropped slightly to $158.18 million. Stacks’ TVL has also dropped from $141.93 million to $87.9 million. Core, meanwhile, has skyrocketed from $3.39 million to $387.94 million—an impressive 11,343.66% increase since February 27. Back in February, defilama.com was tracking just nine sidechain protocols, but now it’s tracking 17.

The rapid growth of Bitcoin-centric L2 solutions and sidechains underscores the growing need for scalability and interoperability in the Bitcoin ecosystem. As these networks compete for dominance, evolving trends and emerging protocols promise to reshape the distribution of locked value in this ever-changing space.

What do you think about the top ten L2 and sidechains for Bitcoin holding $1.31 billion in value locked? Share your thoughts and opinions on this topic in the comments section below.
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