1. Key TVL Metrics for Bitcoin Layer-2 Solutions
2. Competition in the Blockchain Scalability Landscape
3. Bitcoin's Push for Scalability

Bitcoin’s Layer-2 solutions achieved a total locked value (TVL) of $1.31 billion in 2024, marking a significant milestone in the scaling efforts.

Key TVL Metrics for Bitcoin Layer-2 Solutions

Leading the charge among Bitcoin’s Layer-2 solutions are Core and Bitlayer, collectively capturing over 56% of the total TVL. Core has shown remarkable growth, surging by over 1,000% to reach a TVL of $387.94 million, equivalent to 29.46% of the total locked value across Bitcoin’s Layer-2 solutions. Bitlayer follows closely with a TVL of $358.75 million, accounting for 27.24% of the total.

Competition in the Blockchain Scalability Landscape

The rapid adoption of Layer-2 solutions is not limited to Bitcoin. The trend has swept the entire blockchain ecosystem, with other networks like Rootstock and Stacks also being active. Rootstock saw a slight dip in TVL, while Stacks experienced a significant drop from $141.93 million to $87.9 million. The number of available Layer-2 networks grew from 9 to 17 within the first half of 2024.

Bitcoin's Push for Scalability

The rise in Bitcoin’s Layer-2 solutions highlights the demand for more efficient networks. The traditional Bitcoin blockchain, known for its Proof-of-Work (PoW) consensus mechanism, has faced scalability challenges. Layer-2 networks help to address these issues, enabling Bitcoin to process transactions more quickly and affordably.

The advent of Layer-2 solutions signifies a new phase in Bitcoin’s development, striving to overcome technical limitations and enhance competitiveness in blockchain technology.