This year, Bitcoin Layer Two (L2) solutions and sidechains have gained incredible traction, with the top ten Bitcoin-based sidechains or L2 protocols now collectively controlling a total of $1.31 billion in total value locked (TVL). The latest figures show that more than 56% of this total is held within two prominent networks: Core and Bitlayer.
Core and Bitlayer dominate Bitcoin-centric protocols, owning 56% of the value
In recent months, a significant portion of value has flowed into these Bitcoin-focused L2 and sidechain networks. Data from defillama.com shows that the top ten Bitcoin-based protocols collectively hold $1.31 billion. At the time of writing, TVL represents 1.65% of the $79.46 billion held in all decentralized finance (defi) chains. Among the top candidates, several saw substantial growth last quarter, with Core seeing a 1,032% increase in the second quarter alone.
Core, a network that combines Bitcoin and Ethereum functions, leads the pack with $387.94 million as of September 18, accounting for 29.46% of the total. Close behind is Bitlayer, which secures $358.75 million or 27.24%. Rootstocks come in third with $158.18 million (12.01%), while Merlin follows with $138.73 million. Bsquared rounds out 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 below Interlay, with a TVL of $2.61 million. The rest of the protocols in this space are under $1 million each. Earlier this year the landscape was very different, with Rootstock and Stacks leading the charge, with 50.34% and 43.63% of total value respectively at the end of February 2024.
Rootstock’s TVL was $163.75 million on February 27, but has since fallen slightly to $158.18 million. Stacks has also seen its TVL drop from $141.93 million to $87.9 million. Meanwhile, Core has skyrocketed from $3.39 million to $387.94 million – an impressive 11,343.66% increase since February 27. In February, defillama.com only followed nine sidechain-like protocols, but today there are seventeen.
The rapid growth of Bitcoin-focused L2 solutions and sidechains underlines the increasing demand for scalability and interoperability within the Bitcoin ecosystem. As these networks vie for dominance, evolving trends and emerging protocols promise to reshape the distribution of value locked into this ever-changing sector.
What are your thoughts on the top ten L2 and sidechains for Bitcoin with a locked value of $1.31 billion? Share your thoughts and opinions on this topic in the comments below.
Credit : cryptonews.net
