Crypto News– As investor confidence in the crypto market continues to strengthen, CoinGecko’s latest report reveals that Layer-1 blockchains maintain a notable lead over Layer-2 blockchains in terms of total value locked (TVL).
L2 Blockchains Witness Surge in TVL, but L1s Continue to Tower 10 Times Higher
Despite the surge in TVL for Layer-2 blockchains this year, the analysis from the data tracker indicates that L1 blockchains are approximately 9.6 times larger in the TVL market. The total TVL of the top 10 L1 blockchains exhibited a 4.5% growth from January to October. However, it peaked at $45.3 billion and has since decreased to $36.5 billion as of October 2023.
Ethereum emerges as the leading L1 blockchain with the highest TVL, standing at approximately $23 billion as of October 2023. The report highlights Ethereum’s annual peak of $31.5 billion following the Shapella/Shanghai Upgrade around April. Ethereum commands a 63.1% market share of the top 10 L1 blockchains in terms of TVL. Tron ranks second among L1 blockchains in 2023, boasting a TVL of $7.9 billion. Solana is recognized as the fastest-growing L1 blockchain, experiencing a remarkable 97.2% TVL boost this year.
Notably, the report indicates a shift toward more environmentally friendly consensus mechanisms, with 6 out of the top 10 L1 blockchains adopting a Proof-of-Stake (PoS) mechanism. Bitcoin remains the sole blockchain in the top 10 still operating on a Proof-of-Work (PoW) mechanism.