This year, Bitcoin layer two (L2) solutions and sidechains have gained incredible traction, with the top ten Bitcoin-based sidechains or L2 protocols now controlling a combined $1.31 billion in total value locked (TVL). The latest figures reveal that more than 56% of this total is held within 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 and sidechain networks. Data from defillama.com shows that the top ten Bitcoin-based protocols collectively hold $1.31 billion. As of this writing, the TVL represents 1.65% of the $79.46 billion locked across all decentralized finance (defi) chains. Among the top contenders, several have experienced substantial growth in the past quarter, with Core seeing a 1,032% boost in Q2 alone.

Core, a network blending Bitcoin and Ethereum features, leads the pack with $387.94 million locked as of Sept. 18, accounting for 29.46% of the total. Close behind is Bitlayer, securing $358.75 million or 27.24%. Rootstock comes 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 ($87.9M), BOB ($35.5M), Bouncebit ($26.15M), MAP Protocol ($20.18M), and Interlay ($2.83M). BEVM is just below Interlay, with a TVL of $2.61 million. The rest of the protocols in this space hold under $1 million each. Earlier this year, the landscape was quite different, with Rootstock and Stacks leading the charge, holding 50.34% and 43.63% of the total value respectively at the end of Feb. 2024.

Rootstock’s TVL was $163.75 million on Feb. 27, but it has since dropped slightly to $158.18 million. Stacks has also seen its TVL decrease 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 Feb. 27. Back in February, defillama.com tracked only nine sidechain-style protocols, but today, there are 17.

The rapid growth of Bitcoin-focused L2 solutions and sidechains underscores the increasing demand for scalability and interoperability within the Bitcoin ecosystem. As these networks compete for dominance, evolving trends and emerging protocols promise to reshape the distribution of value locked across this ever-changing sector.

Source : Bitcoin News - Sep 18, 2024