September 2024 brought considerable growth to the blockchain sector, driven by favorable macroeconomic conditions and regulatory advances. Bitcoin’s Layer 2 solutions stood out as the top performers, significantly outpacing Ethereum Layer 2 networks in terms of growth. According to Footprint Analytics, the total value locked (TVL) in Bitcoin Layer 2 surged by 33%, with Core emerging as the leader, commanding a 30.5% market share.
📊 September Chains Report 🔥
Crypto markets gained amid favorable macro conditions and regulatory progress in September.
🔹 #SuiNetwork breaks into Top 15
🔹 Bitcoin L2s surge: @Coredao_Org @BitlayerLabs @rootstock_ioFull report🔗https://t.co/3x4lzziQV2
— Footprint Analytics (@Footprint_Data) October 12, 2024
Bitcoin Outshines Ethereum in September Gains, Sui Enters Top 15 Chains
Bitcoin’s price also saw impressive gains, rising 10.5% from $57,429 to $63,485 by the end of the month. Ethereum, while positive with a 7.3% increase, continued to trail behind Bitcoin, and the ETH/BTC ratio dropped to a cycle low of 0.0386.
On the Layer 1 front, Sui made a significant breakthrough, entering the top 15 chains by market cap for the first time, with a staggering 132.2% market cap increase. This achievement was fueled by the Sui Foundation’s initiatives, which incentivized decentralized app (dApp) development, leading to a surge in activity in DeFi and gaming.
Macroeconomic Factors and Institutional Interest Fuel Blockchain Layer 2 Growth
The positive momentum was further driven by macroeconomic factors. The U.S. Federal Reserve’s 50 basis point rate cut and regulatory progress, including the SEC’s approval of options for Bitcoin spot exchange-traded products (ETPs), bolstered the market. Institutional interest in cryptocurrencies also grew, as evidenced by major moves from financial institutions like the Bank of New York.
Despite Ethereum’s ecosystem facing some scrutiny and its market share shrinking slightly, the overall outlook for the blockchain sector remains strong. The rise of Bitcoin Layer 2 solutions and the rapid ascent of chains like Sui suggest that the space is evolving quickly, with new players making significant strides.
These developments underscore the growing importance of Layer 2 scaling solutions and innovative blockchain projects as the sector continues to mature and expand across different use cases.