Bitcoin Boosted by Its Layer 2s

The Bitcoin ecosystem, driven by the Proof-of-Work (PoW) mechanism, is witnessing a spectacular rise with the emergence of Layer 2 (L2) solutions.

output: As Layer 2 solutions gain momentum, the competition among blockchains is heating up. While Ethereum has been the dominant force in this domain, Bitcoin is now joining the race. These solutions aim to enhance scalability and interoperability within the blockchain landscape. In this context, Bitcoin is making a concerted effort to catch up, particularly in light of the remarkable growth of networks like Core and Bitlayer, which now collectively hold over 56% of the total value locked.

Bitcoin gets a boost from its Layer 2s

Propelled by the Proof-of-Work (PoW) mechanism, the Bitcoin ecosystem is experiencing a spectacular rise with the introduction of Layer 2 (L2) solutions. In 2024, these networks have garnered attention, accumulating $1.31 billion in Total Value Locked (TVL).

Among these networks, Core and Bitlayer lead the pack, capturing over 56% of this wealth. Notably, Core has witnessed an astonishing 1,032% growth in the second quarter, reaching $387.94 million, which constitutes 29.46% of the total. Bitlayer follows closely with $358.75 million (27.24%).

The figures for 2024 illustrate this revolution:

This surge towards L2s highlights a growing demand for more efficient networks, especially in the face of Bitcoin’s (BTC) scalability challenges.

Blockchains: a race to the billions

The L2 boom is not limited to Bitcoin; the phenomenon spans the entire blockchain landscape. In addition to Core and Bitlayer, other projects are making their mark.

For instance, Rootstock, despite experiencing a slight decrease in TVL from $163.75 million to $158.18 million, maintains a strong presence. Similarly, Stacks has seen a decline from $141.93 million to $87.9 million.

However, the L2 landscape continues to expand rapidly, with a multitude of new options emerging. As of today, there are 17 L2s compared to only 9 at the beginning of the year.

This diversification points to a clear trend: blockchains, in their constant pursuit of solutions to technical challenges, are witnessing a rapid evolution of their protocols.

Moreover, with the explosion of Layer 2s on Ethereum and the advancement of Bitcoin protocols, the blockchain domain is experiencing a renaissance, leading some experts to express concerns regarding the risks of fragmentation.

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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

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