Overview of the Public Chain Industry in November 2024

In November 2024, the blockchain industry is experiencing a bull market, with Bitcoin prices hitting new highs, approaching the $100,000 mark, and its market capitalization surpassing that of silver and other major traditional assets. Ethereum is also rebounding strongly, and altcoins are significantly rising. Bitcoin Layer 2 continues to grow robustly, while Ethereum Layer 2 is growing relatively modestly under competitive pressure.

Market Overview

The cryptocurrency market performed brilliantly in November, with Bitcoin soaring from $69,386 to $96,427, an increase of 39.0%. Ethereum followed closely, climbing from $2,511 to $3,711, an increase of 47.8%. Bitcoin's market capitalization surpassed that of silver and Saudi Aramco, securing the seventh position among global assets after approaching the $100,000 mark on November 23.

The results of the U.S. elections have become a catalyst for growth in the crypto market, potentially influencing future cryptocurrency legislation and regulation. The market has reacted positively, especially reflected in the performance of popular sectors such as memecoins, decentralized artificial intelligence, and decentralized science.

The broader financial markets also performed strongly. The financial sector led the stock market under expectations of U.S. tax reform and deregulation. However, there was some volatility in international markets, with the Renminbi pressured by concerns over potential tariffs in the U.S., while gold prices fell as election-related uncertainties eased.

Layer 1

In November 2024, the total market capitalization of blockchain surged by 41.1% to $2.8 trillion. Bitcoin maintained its dominant position with a 68.1% share, down from 70.1% in October. Ethereum's market share reached 15.9%, while Solana surpassed BNB Chain, with a share of 4.0%.

Altcoins have performed exceptionally well, with Stellar (XLM) leading the pack with a 466.8% increase, followed by Hedera (HBAR) rising by 269.7%, Cardano (ADA) increasing by 201.5%, and Polkadot (DOT) up by 130.7%. The surge of Stellar reflects the market's focus on its cross-border remittance infrastructure and CBDC capabilities, possibly influenced by expectations of a clearer regulatory framework following the U.S. elections.

The TVL in the DeFi sector grew by 43.0% to $90.8 billion in November. Ethereum led with a 61.6% increase, while Tron and Solana ranked second and third, respectively. Although most chains saw growth, Polygon declined by 5.9%, and TON continued its downward trend since October.

The Move technology stack blockchain continues to maintain strong development momentum. Sui has set new highs in token price and market capitalization, while achieving a strategic partnership with Franklin Templeton. Aptos is driving on-chain activity growth through its Meme launch platform. Movement is about to launch its mainnet, and its testnet data is very impressive.

Stablecoins continue to attract attention. USDS, as the first major DeFi native stablecoin, has launched on Solana, while Ripple is reportedly about to receive approval for RLUSD from the New York State Department of Financial Services.

Bitcoin Layer 2 and Sidechains

In November, the total TVL of Bitcoin Layer 2 and sidechains reached $2.4 billion, a 34.6% increase from October. The competition for Bitcoin liquidity among major platforms has intensified.

Core TVL grew by 55.7% to $890 million, with market share expanding to 37.4%. This growth was fueled by the Fusion upgrade, which introduced dual staking and liquidity Bitcoin staking. Bitlayer maintained the second position with $580 million in TVL, but its market share fell to 24.4%. BSquared continued to grow, with a monthly increase of 53.1% to $260 million in TVL, rising to third place.

At the project level of BTCfi, Pell Network has become a leader with a TVL of $400 million, followed by strong performances from Avalon Finance and DeSyn across multiple chains.

Ethereum Layer 2

In November, the total TVL (in the standard bridging section) of Ethereum Layer 2 solutions reached $27.5 billion, an increase of 2.0% compared to October, with growth trailing behind Bitcoin scaling solutions.

Arbitrum One maintains its leadership position with a TVL of $11.3 billion and a market share of 41.0%. Base surpasses Optimism to take the second position, with a TVL of $5.1 billion and a share of 18.6%. Starknet's TVL increased by 5.1%, surpassing Blast to rank fourth. World Chain performed exceptionally well, with a TVL growth of 131.4% to $570 million.

The Ethereum Foundation has strengthened financial transparency by releasing the 2024 report. Vitalik Buterin emphasized the future development of Ethereum, including the implementation of DAS to enhance Layer 2 scalability and infrastructure improvements to support diverse applications.

Blockchain Game Public Chain

In November, the number of active blockchain games increased by 4.6% to 1,696. BNB Chain, Polygon, and Ethereum maintain market leadership in game distribution.

User engagement patterns are undergoing new changes, with opBNB, Ronin, and Nebula leading with an average of 1.8 million, 900,000, and 400,000 daily active users respectively. OpBNB's DAU increased by 46.1%, and Ronin showed strong recovery.

The game based on Telegram has shown mixed results. The DAU of the TON ecosystem has decreased by 41.9%, while Sui has risen against the trend, with a DAU increase of 23.1%, mainly thanks to the success of BIRDS.

Financing Situation

In November, the blockchain sector recorded 12 financing events, with a total amount of 79.8 million USD, a decrease of 23.3% compared to October.

Zero Gravity Labs has become the largest financing recipient this month, securing $40 million in seed funding and a $250 million token purchase commitment. The company has shifted its focus to position itself as a crypto AI startup, developing a decentralized AI operating system.

Several Layer 1 blockchains have secured funding, including Cytonic, Pharos, Talus Network, EtraPay, and Datalayer. AvaCloud acquired EtraPay, obtaining the innovative crypto token standard Encrypted ERC.

The Layer 2 ecosystem continues to maintain investment activity, with six projects securing a new round of financing, including Bitfinity and Lnfi Network for Bitcoin Layer 2, Heurist and Corn for Ethereum Layer 2, as well as other Layer 2 projects Akave and AgentLayer.