Sui Rises to Top 15 Public Chain Market Cap, Bitcoin Layer2 TVL Surges in September Industry Report
TechFlow Selected TechFlow Selected
Sui Rises to Top 15 Public Chain Market Cap, Bitcoin Layer2 TVL Surges in September Industry Report
Bitcoin Layer2 TVL surges, Sui enters top 15. Ethereum faces scrutiny as Layer2 landscape continues to evolve.
Navigating Web3 tides with focused insightsAuthor: Stella L
Data source: Footprint Analytics Blockchain Research Page
In September 2024, the blockchain industry experienced significant growth, driven by favorable macroeconomic conditions and regulatory progress, resulting in strong performance across the cryptocurrency markets. Bitcoin's Layer 2 solutions particularly stood out, growing faster than Ethereum’s Layer 2. In the Layer 1 space, Sui entered the top 15 by market capitalization for the first time, capturing market attention. The Ethereum ecosystem faced scrutiny, sparking discussions about future development standards, while Bitcoin Layer 2 TVL (Total Value Locked) saw a notable increase.
The data in this report comes from Footprint Analytics' Blockchain Research page, which provides an easy-to-use dashboard containing the most critical statistics and metrics for understanding the blockchain landscape, updated in real time.
Market Overview
The crypto market demonstrated strong performance in September. Bitcoin opened at $57,429 and closed the month at $63,485, achieving a 10.5% gain. Ethereum performed positively as well, though underperforming Bitcoin. Ether started at $2,426 and ended at $2,603, up 7.3%. Notably, mid-September saw the ETH/BTC price ratio hit a new cycle low of 0.0386.
Data source: Bitcoin and Ethereum Price Trends
Several key factors contributed to this positive market sentiment:
-
Monetary Policy Shifts: On September 18, the U.S. Federal Open Market Committee (FOMC) unexpectedly implemented a 50-basis-point rate cut, exceeding expectations. Later in the month, Chinese policymakers introduced macroeconomic stimulus measures, supporting global equity markets.
-
Regulatory Progress: The U.S. regulatory environment showed signs of improvement. The SEC approved listing applications for spot Bitcoin ETPs (Exchange Traded Products), with more approvals expected.
-
Institutional Adoption: Bank of New York appears poised to offer cryptocurrency custody services, a move that could further solidify crypto’s legitimacy within the financial sector.
-
Political Support: Positive shifts also emerged politically. Former U.S. President Trump announced a new decentralized finance (DeFi) protocol, while Vice President Harris made supportive statements regarding digital assets and blockchain technology.
Layer 1
In September 2024, the total market capitalization of blockchain cryptocurrencies reached $1.9 trillion, a 6.9% increase from August. Market dominance remained concentrated among Bitcoin (67.3%), Ethereum (16.8%), BNB Chain (4.5%), and Solana (3.9%). Bitcoin and BNB Chain maintained their respective market shares, while Ethereum’s share declined by 0.6 percentage points in absolute terms, and Solana’s rose by 0.3 percentage points.
Data source: Public Chain Token Market Cap
Among the top 15 public chains by market cap, Sui stood out with a 132.2% increase in market value, entering the ranking for the first time at No. 13.
Data source: Public Chain Token Prices and Market Caps at End of September 2024
Total DeFi TVL reached $68.1 billion, up 6.4% from August, with Sui contributing a 67.4% increase in its TVL.
Data source: Public Chain TVL at End of September 2024
September was a breakout month for Sui, fueled by efforts from the Sui Foundation to incentivize dApp development. The NAVI protocol in DeFi and the Telegram-based game BIRDS significantly drove on-chain activity.
At the TOKEN2049 conference in Singapore, Vitalik Buterin emphasized the evolution of cryptocurrency from early-stage experimentation to usability, highlighting progress toward mass adoption. The following trends illustrate this direction:
Web3 Gaming continues to be a key driver for blockchain mass adoption. Multiple networks—including TON, BNB Chain, Sui, and Aptos—are expanding their user bases through integration with the Telegram ecosystem.
Stablecoins and their financial applications are gaining momentum. Celo’s success in Africa demonstrates the potential of stablecoins in emerging markets, while Sui announced upcoming integration with Circle’s native USDC.
Efforts to lower entry barriers have intensified. BNB Chain launched a "Gas-Free Carnival," offering zero gas fees for certain transactions. Solana introduced its Web3 smartphone, the Solana Seeker, while Ronin unveiled Ronin Waypoint—a universal account and keyless wallet for its ecosystem.
These developments highlight the industry’s commitment to improving user experience and expanding blockchain’s reach across sectors and demographics.
Bitcoin Layer 2
In September 2024, Bitcoin Layer 2 (including sidechains) TVL surged to $1.5 billion, a 33% increase from August. Core led the segment with $440 million in TVL (30.5% market share), followed by Bitlayer ($390 million, 26.8%), Rootstock ($180 million, 12.3%), and Merlin ($130 million, 9.2%).
Data source: TVL of Bitcoin Ecosystem Public Chains
Core’s performance was especially impressive, with its TVL more than doubling from August. This surge was primarily driven by the launch of Core Ignition Drop Season 2, which expanded beyond BTCFi into Web3 gaming, significantly boosting on-chain activity. As a result, Core overtook Bitlayer to become the largest Bitcoin scaling solution by TVL, even as Bitlayer achieved a solid 9.4% growth.
Rootstock maintained steady momentum, growing its TVL by 12.5%, retaining third place. Other notable performers included BSquared (TVL up 42.8%), Stacks (up 26.5%), and BEVM (up 6.3%).
Looking ahead, the Bitcoin staking protocol Babylon announced that Mainnet Phase-1 Cap-2 will launch in the second week of October. Cap-1 quickly attracted 1,000 BTC in staked assets, raising high expectations for Cap-2.
Solv Protocol expanded its Bitcoin staking ecosystem, offering new options for cbBTC holders on Base and launching the high-yield SolvBTC.BBN pool in collaboration with Pendle. The platform integrated with multiple DeFi protocols, increasing its total integrations to 35 blockchains and protocols. Leveraging Chainlink’s cross-chain technology and expanding to Avalanche and Base, Solv now operates across nine blockchains. These developments—including becoming the first Bitcoin staking protocol in the Base ecosystem—highlight Solv’s growing role in expanding Bitcoin DeFi opportunities across multiple chains.
Ethereum Layer 2
In September 2024, Ethereum Layer 2 TVL reached $23.2 billion (canonically bridged portion), an 8.31% increase from August—slower than the growth seen in Bitcoin Layer 2.
Arbitrum One, Optimism, and Base continued to dominate TVL market share at 48.8%, 19.7%, and 8.1%, respectively, with minimal changes from the previous month. However, their combined share slightly decreased, indicating growth among other Ethereum Layer 2 solutions.
DeGate maintained strong performance, with TVL increasing by 17.9% in September, following an 20.6% rise in August. Taiko and Scroll also grew, up 7.0% and 7.4%, respectively. In contrast, Blast’s TVL dropped by 18.9%, worsening its 18.8% decline in August.
Data source: Ethereum Layer 2 Overview – Rollups (Bridged Metrics), September 2024
The Ethereum ecosystem came under close community scrutiny regarding innovation and development. In response, Vitalik Buterin actively engaged on social media, addressing concerns and outlining a vision for future development.
A key development was Vitalik Buterin’s announcement on X that starting in 2025, he would “only publicly mention L2s that have reached Stage 1 or higher (in blogs, talks, etc.).” This signals higher standards for Ethereum rollups, emphasizing the necessity for Layer 2 solutions to achieve “Stage 1” status by next year. To meet this benchmark, rollups must enhance decentralization and security, including implementing operational fraud proofs or validity proof systems.
Currently, only two rollups have reached “Stage 2”: DeGate and Fuel. Three others have achieved “Stage 1”: Arbitrum One, Optimism, and dYdX V3. This classification sets a high bar for projects within the ecosystem, underscoring the ongoing evolution and maturation of the Ethereum Layer 2 landscape, with security and decentralization clearly prioritized in future development and recognition.
Blockchain Gaming
In September, the number of active games across blockchain networks increased to 1,563, up 4.5% from August. Market leadership remained stable, with BNB Chain, Polygon, and Ethereum leading in game count at 22.0%, 18.6%, and 14.8%, respectively.
Data source: Distribution of Active Blockchain Games by Public Chain
The daily active user (DAU) landscape shifted significantly, with opBNB, Ronin, and Nebula (a SKALE subnet) emerging as top performers, averaging 1.1 million, 1.1 million, and 458,000 DAUs, respectively. By end of September, their DAU shares were 28.2%, 20.1%, and 9.2%.
Data source: Daily Active Users of Blockchain Games by Chain
opBNB showed remarkable growth, with average DAU surging 62.0% month-over-month, increasing its market share from 22.4% to 28.2%. This growth was driven not only by the popular game SERAPH: In The Darkness but also by the mid-September launch of Elfin Metaverse, an esports platform and open-world metaverse.
In contrast, Ronin’s DAU share continued to decline, dropping from 29.5% in August to 20.1% in September. This trend is largely attributed to declining performance from Pixels, whose DAU fell from over 700,000 to 470,000 during the month. Notably, while Ronin’s average DAU was nearly double that of opBNB in August, opBNB surpassed Ronin in September—marking a pivotal shift in competitive dynamics.
Sui’s average DAU grew by 48.4% to 92,000, boosted by the successful Telegram game BIRDS, which attracted a large user base within its first week. This achievement underscores the growing trend of leveraging Telegram for user acquisition in blockchain gaming.
For more insights into blockchain gaming trends, read "September 2024 Blockchain Gaming Report: Industry Rebound and Telegram Games Sparking Frenzy."
Funding Activity
In September 2024, funding activity in the public chain sector heated up, with 11 funding events totaling $170 million—a 47.3% increase from August. Three of these deals did not disclose specific amounts.
Public Chain Funding Events, September 2024 (Data source: crypto-fundraising.info)
Two major events drove the surge in funding this month.
The Celestia Foundation announced it raised $100 million in a round led by Bain Capital Crypto, bringing its total funding to $155 million. Launched in 2023, Celestia’s unique architecture separates consensus and data availability from execution, offering greater flexibility for Layer 2 rollup developers. However, the funding announcement sparked community skepticism, with allegations of “pump-and-dump” behavior, and claims that the reported $100 million was actually an OTC token sale from months prior.
Another major move was a $30 million strategic investment in the TON blockchain by Bitget and Foresight Ventures. The investment aims to strengthen Telegram-based projects, particularly "tap-to-earn" games such as Hamster Kombat and Notcoin.
Additionally, three Layer 1 blockchains—Initia, Octra, and Aptos—announced new funding rounds. Layer 2 solutions continued to attract investor interest, with Bitcoin Layer 2 Zulu Network and Ethereum Layer 2s RISE Chain, Kroma, and t1 protocol, along with Hemi Network and AminoChain, all securing funding.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
Footprint Analytics
