In 2024, the public chain industry completed a crucial transformation from technological competition to application implementation, with the influx of institutional capital and innovative applications driving the industry's scale beyond $2.8 trillion.
Author: Stella L (stella@footprint.network)
Data Source: Footprint Analytics Public Chain Research Dashboard
2024 marks an important watershed year for the public chain industry, with the industry's focus shifting from technological competition to practical application implementation. In this year, the public chain market cap grew by 105.3% to $2.8 trillion, Bitcoin's price surpassed $100,000, institutional adoption was achieved through ETFs, Ethereum Layer 2 networks expanded to over 200 chains, and Bitcoin Layer 2 TVL grew by 1,277.6%, demonstrating the industry's transition from technological experimentation to practical real-world applications. The public chain industry is undergoing a gradual shift from technology-driven development to application-driven development.
Note: Unless otherwise specified, all data in this report is as of December 20, 2024.
Market Dynamics: Growth and Transformation
In 2024, the public chain industry achieved unprecedented growth, with multiple key indicators showing significant expansion.
The total market cap of public chains grew by 105.3% to $2.8 trillion. Bitcoin's dominance rose to 69.8%, while Ethereum's share fell from 20.4% to 15.2%. BNB Chain and Solana's shares stabilized at 3.5% and 3.3%, respectively, with other platforms accounting for 8.1%.
The DeFi sector also exhibited strong growth momentum in 2024, with total locked value (TVL) reaching $102.8 billion by the end of the year, representing an 88.6% year-on-year increase. Among the top 10 public chains ranked by TVL, Bitcoin and TON showed the most significant growth, both exceeding 2,000%. Aptos, Sui, and Solana also performed well, with increases of 754.4%, 677.1%, and 321.3%, respectively. However, Tron and Avalanche saw declines in TVL.
The Ethereum Layer 2 ecosystem experienced significant centralization trends in 2024. Arbitrum maintained its lead 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 (22.5% share), while Optimism ranked third with a TVL of $4 billion (15.8%). Together, these three platforms accounted for 79.1% of Ethereum L2 DeFi TVL, while previous competitors like Blast, zkSync, and Starknet saw a decline in market share.
Meanwhile, the ecosystem continued to expand, with 50 Rollups and 70 Validium & Optimium currently operating on the mainnet, along with about 90 upcoming chains, bringing the total number of Ethereum L2s to over 200.
The Bitcoin Layer 2 and sidechain ecosystem experienced explosive growth, with total locked value reaching $2.6 billion, a significant increase of 1,277.6% from 2023. Core led with a TVL of $790 million (30.3% market share), followed by Bitlayer ($500 million, 19.4% share) and BSquared ($330 million, 12.7% share). This growth was 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 in existence.
Competitive Landscape: Leaders and Challengers
In 2024, the competitive landscape of the public chain ecosystem experienced significant changes, primarily characterized by the strengthening of Bitcoin's dominance, the recovery of Solana, and the rise of emerging challengers.
Bitcoin: From Store of Value to Financial Infrastructure
Bitcoin achieved remarkable growth in 2024, with its price increasing by 129.2% and its market cap rising by 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, two key developments occurred in the Bitcoin ecosystem:
The increase in institutional adoption: The successful issuance of spot ETFs in January fundamentally changed the institutional access landscape, with BlackRock's product quickly reaching $20 billion. Bitcoin surpassed silver and Saudi Aramco to become the seventh largest asset globally, marking a shift from speculative assets to recognized stores of value.
The rise of BTCfi: The Bitcoin ecosystem 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 made progress through integrations like the BOB network with Optimism and the BEVM 'Super Bitcoin' framework, although standardization still faces challenges.
Ethereum: Layer 2 Drives Ecological Evolution
2024 was 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 growth of Layer 2 adoption. The successful issuance of spot ETFs in July received some degree of institutional recognition, but Ethereum's price performance lagged significantly behind Bitcoin.
The Ethereum mainnet achieved significant changes through the 'Cancun upgrade,' successfully reducing Layer 2 transaction costs and enhancing scalability. However, the migration of activity to Layer 2 resulted in a decline in Ethereum's own fee revenue, sparking discussions about Ethereum's long-term sustainability. The Ethereum Foundation responded with several 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 exhibited significant growth and integration throughout the year. Notable new entrants enriched the ecosystem, including World Chain, Uniswap's Unichain, and Sony's Soneium. This evolution highlighted Ethereum's transition from a purely execution layer to a diverse Layer 2 ecosystem focused on settlement and security provision. Although revenue models and competitive dynamics remain uncertain, Ethereum's continued development in developer activity and innovation in scaling solutions showcases its adaptability.
Solana: The Third Giant
2024 witnessed a strong comeback for Solana, with its price rising by 70.8% and its market cap growing by 90.9%, with the coin price breaking $260 in November, reaching an all-time high. This revival began with the January Jupiter airdrop, with unprecedented activity in the Solana ecosystem. Solana established itself as a retail trading hub, fostering a vibrant meme and DeFi community. Beyond meme culture, Solana made advancements in various fields: 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) exhibited significant growth in 2024, with Toncoin's price increasing by 149.6% and its market cap growing by 84.3%. TON's success primarily stemmed from its deep integration with Telegram, effectively bridging traditional social networks and blockchain technology. The platform simplified the crypto experience through Telegram wallet functionality and blockchain integration, providing millions of users with easy access to gaming, meme, and DeFi applications, establishing a model for large-scale adoption.
Sui: From Move Language Pioneer to Ecosystem Leader
Sui performed exceptionally well, with its token price soaring by 461.6% and its market cap growing by 1,363.8%. This success reflects market confidence in the Move language technology and ecosystem development. Sui focuses on DeFi and gaming, including Telegram game integration and the innovative SuiPlay0X1 game console development, demonstrating its comprehensive layout for ecosystem growth. The platform's emphasis on user experience and protocol development creates positive network effects, attracting both developers and users.
Base: Institutional Background Driving Rapid Growth
Base's significant growth was driven by multiple key factors. Coinbase significantly lowered the entry barrier for mainstream users through its user-friendly smart wallet. The platform gained substantial momentum from successful social applications like friend.tech and Clanker, while the popularity of memecoins further boosted activity on the Base chain. The implementation of the 'Cancun upgrade' significantly reduced transaction fees, continuously enhancing Base's appeal to developers and users.
Major Trends in the Public Chain Industry in 2024
New chains are emerging continuously.
In 2024, project teams launched their own public chains. DeFi giant Uniswap announced Unichain; gaming platform Treasure DAO developed a ZK-based Layer 2; the NFT space saw Pudgy Penguins launch Abstract; and Web3 platform Galxe introduced Gravity. Furthermore, the entry of innovative new chains like Monad, Berachain, and HyperLiquid reflects the public chain industry's shift towards specialized blockchain infrastructure.
Institutional Adoption: From Exploration to Strategic Integration
Transformation in Institutional Participation
2024 marked a decisive shift in institutional adoption from experimental blockchain initiatives to strategic implementation. Financial institutions led this transformation, with BlackRock's Bitcoin ETF quickly reaching $20 billion, and PayPal expanding PYUSD to Solana. Tech giants showcased deeper engagement through innovative means: Sony launched the Soneium chain for entertainment applications, and Google Cloud expanded its Web3 portal services. Infrastructure development was particularly noteworthy, with Circle launching native USDC on Sui and Visa integrating Solana for settlements.
Transformation in Institutional Investment Paradigms
The public chain sector showed strong recovery in 2024, with 174 financing events raising a total of $1.7 billion, a 137.1% increase from the previous year. Notably, institutional investment strategies shifted from purely infrastructure-focused to application-oriented innovations. Early investment events accounted for 21.4% of total financing events, while Series A and B rounds accounted for 31.8%, reflecting the ecosystem's growing maturity.
The investment philosophy of venture capital has undergone a significant evolution, prioritizing user-facing applications over traditional infrastructure development. This is reflected in substantial investments in consumer-oriented projects: Monad raised $225 million to optimize user experience, while Celestia and Berachain each received $100 million for application-oriented infrastructure.
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 industry mindset of 'build first, users will come naturally.' 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' (UOPS) than most Layer 2s, highlighting the complex relationship between technical capability and actual adoption.
This reality prompted a strategic shift within the ecosystem. Blockchain platforms increasingly focused on identifying specific user needs and building targeted solutions, rather than merely pursuing pure technical advancement. This 'find users first, then build' approach was reflected in several successful initiatives. Social finance integration became a particularly effective strategy, with TON's Telegram integration and Base's friend.tech showcasing how familiar social platforms can drive blockchain adoption. Simplifying the user experience through account abstraction and familiar authentication methods significantly lowered the entry barrier for mainstream users.
The evolution of meme culture in the blockchain space further illustrates this shift towards application-oriented development. Initially purely speculative activities transformed into effective user acquisition channels, especially on platforms like Solana and Base. These networks successfully leveraged meme-related initiatives to drive ecosystem growth while establishing sustainable community engagement. The success of these user-centric approaches indicates that sustainable growth in the blockchain sector increasingly relies on understanding and serving user needs, rather than merely advancing technical capabilities.
Outlook for 2025
As the blockchain industry shifts from technological experimentation to practical implementation, 2025 is expected to be a pivotal year of transformation.
Regulatory Clarity
The regulatory environment has shown significant improvement, especially in the U.S. A clearer regulatory framework is expected to benefit the entire industry, particularly with progress in stablecoin legislation. This regulatory clarity will promote blockchain adoption by institutions through increased regulated products and services, while fostering competition among jurisdictions in crypto regulation.
Specialization of Public Chains
Specialization of public chains has become the dominant trend, shifting from general Layer 1 competition to purpose-driven architectures. With cross-chain infrastructure support, application-specific chains and optimized execution environments will see significant growth. The 'Rollup as a Service' (RaaS) sector is expected to expand, providing enterprises and project teams with more convenient customized blockchain solutions.
Technological Innovation and AI Integration
In 2025, technological innovation will shift from pure breakthroughs to application-oriented infrastructure upgrades. The implementation of Proto-Danksharding will double Blob capacity and propel Layer 2 scaling into a new phase; the development of chain abstraction technology will bring a more intuitive user experience; and the standardization of cross-chain communication will simplify interoperability.
At the infrastructure level, we expect to see more developments driven by actual demand. The modular blockchain technology stack will mature, providing specialized solutions for data availability, settlement, and execution layers. Notably, the deep integration of AI technology with blockchain will reshape infrastructure forms: from improving user interfaces to enabling complex on-chain AI agents, from decentralized model training to supporting social finance integration, these innovations will provide support for more complex application scenarios while maintaining security and decentralization, laying a solid foundation for the next round of blockchain innovation.
Conclusion
The past year has proven that sustainable growth relies not only on technical capabilities but also on meaningful user adoption and actual utility. With increasing regulatory clarity, advancements in technological infrastructure, and growing institutional participation, the foundation for meaningful large-scale adoption of blockchain technology is in place. The focus is shifting from 'what's technically possible' to 'what's practically valuable,' a transition that will define the next phase of industry growth in 2025.
