February 2024 Blockchain Report: Insights on Dominance, Development, and Adoption
The blockchain industry is experiencing a significant boom and has become a present-day technology rather than just a futuristic concept. In order for technology enthusiasts to thrive in this fast-paced and competitive world, it is crucial to have a clear understanding of every development in the industry.
This monthly report aims to simplify blockchain analysis and provide a clear overview of the latest developments in the sector. By using high-quality data, this report ensures utmost clarity in exploring the rapidly transforming blockchain landscape and staying informed about the major trends recognized by the data collected for the month.
1. Blockchain Performance: A General Analysis
To analyze the performance of a blockchain for a particular month, one can start by looking at the Total Value Locked (TVL). The TVL of a blockchain’s decentralized finance ecosystem reflects the total value of assets locked in smart contracts. An increasing TVL indicates adoption, economic activity, and user trust, suggesting a positive month of robust DeFi participation and enhancing the overall performance of the blockchain.
1.1. Blockchain Performance Analysis Using TVL and Dominance
Ethereum dominates the market with 65.61% of the TVL, followed closely by Tron and BSC with 11.62% and 6.17% respectively.
1.1.1. Analyzing Top Blockchains Using 30-Day TVL Movement
Let’s analyze the top blockchains that dominate the sector in terms of the Year-to-Date (YTD) TVL data, with the 30-Day TVL movement data to understand the changes they have witnessed in the last 30 days.
No.
Blockchain
30-Day TVL Movement (in %)
1
Ethereum
43.8%
2
TRON
Nil
3
BNB Smart Chain
23.4%
4
Arbitrum One
22.0%
5
Solana
53.1%
6
Polygon POS
18.4%
7
Optimism
7.9%
8
Avalanche
15.2%
9
Manta Pacific
24.4%
10
Base
5.0%
Solana dominates with a 30-day TVL movement of 53.1%, followed closely by Ethereum with 43.8%.
1.2. Blockchain Monthly Performance Analysis Using 30-Day TVL Movement
Now, let’s see how the performance analysis looks like when solely based on the 30-day TVL movement data.
Blockchain
30-Day Movement (in %)
Sei Network
116.6%
StarkNet
85.4%
Aptos
60.5%
Hedera Hashgraph
59.6%
Mantle
56.8%
Solana
53.1%
Ethereum
43.8%
Boba Network
38.2%
Scroll
34.4%
Ronin
34.3%
Sei Network leads with a 30-day movement of 116.6%, followed by StarkNet with 85.4% and Aptos with 60.5%. Other blockchains like Hedera Hashgraph, Mantle, Solana, Ethereum, Boba Network, Scroll, and Ronin also show impressive 30-day movements.
2. Blockchain Comparative Analysis: How Top Blockchains Performed This Month
By focusing on four aspects – economic strength, development activity, market stability, and adoption potential – we can gain insights into the performance of each blockchain.
2.1. Blockchain Analysis: Total Value Locked and Economic Activity
Let’s assess the economic activity within each blockchain’s ecosystem by looking at the TVL, transaction volume, fees, and revenue. A higher TVL, transaction volume, and revenue may indicate a more vibrant and utilized blockchain.
Blockchains
Revenue
Fees
Volume
TVL
Ethereum
10740K USD
12060K USD
1772M USD
$48,409,240,331
TRON
1560K USD
1560K USD
53.77M USD
$8,575,920,943
BNB Smart Chain
51.41K USD
514.1K USD
698.55M USD
$4,553,551,332
Arbitrum One
85.91K USD
400.26K USD
413.81M USD
$3,523,328,614
Solana
1.66K USD
3.32K USD
656.14M USD
$2,112,119,544
Polygon POS
34.29K USD
79.94K USD
149.89M USD
$1,027,218,469
Optimism
-12.97K USD
214.1K USD
91.5M USD
$944,636,046
Avalanche
41.68K USD
41.68K USD
77.07M USD
$936,810,058
Manta Pacific
$547,258,490
Base
19.08K USD
179.11K USD
40.27M USD
$405,441,699
The data shows the total value locked in the top ten blockchains. Ethereum leads with a TVL of $48.4 billion, followed by TRON and BNB Smart Chain. Solana and Polygon POS also exhibit substantial values. This indicates Ethereum’s dominant position, while emerging networks like Solana show potential for growth in decentralized finance.
The data illustrates the transaction volumes in the top ten blockchains, with Ethereum leading at 1772M USD, followed by BNB Smart Chain and Solana. Ethereum’s high volume indicates its continued dominance in transactions. Solana’s notable volume suggests growing adoption, while BNB Smart Chain’s position underscores Binance’s significant presence in the blockchain space.
The data reveals the fees in the top blockchains, with Ethereum leading at 12060k USD, followed by TRON and BNB Smart Chain.
The data depicts the revenue in the top ten blockchains, with Ethereum leading at 10740K USD, followed by TRON and Arbitrum One. Ethereum’s high revenue indicates its thriving ecosystem. Negative revenue on Optimism suggests early challenges.
In the economic analysis of blockchains, revenue, fees, volume, and TVL indices provide vital insights. Revenue showcases the financial health of networks, with Ethereum leading the way, indicating a thriving ecosystem despite Optimism’s early challenges. Fees reflect transaction costs, with Ethereum dominating and suggesting network congestion. Volume highlights transaction activity, with Ethereum’s dominance and Solana’s growing adoption evident. TVL signifies the value invested in DeFi, showcasing Ethereum’s entrenched position and Solana’s potential.
2.2. Blockchain Analysis: Development and Innovation
Let’s evaluate the development activity and innovation within each blockchain by looking at the number of commits and core developers. A blockchain with a strong development community, active core developers, and more commits may suggest ongoing improvement and evolution.
Blockchains
Commits
Core Developers
Ethereum
9870
330
TRON
26
4
BNB Smart Chain
148
20
Arbitrum One
1760
41
Solana
500
28
Polygon POS
209
17
Optimism
2300
46
Avalanche
1680
37
Manta Pacific
Base
155
15
The data presents the number of core developers in the top blockchains, with Ethereum leading at 330, followed by Optimism and Arbitrum One. Ethereum’s large developer base indicates robust ecosystem support and ongoing development efforts. Optimism and Arbitrum One also show significant developer activity, crucial for maintaining and improving blockchain protocols. Networks with fewer developers like TRON may face challenges in keeping up with innovation and security standards.
The data displays commit counts in the top blockchains, with Ethereum leading at 9870, followed by Optimism and Arbitrum One. High commit counts signify active development and maintenance of blockchain protocols. Ethereum’s substantial commits indicate ongoing enhancements and updates, crucial for its robustness. Networks like TRON with fewer commits may encounter difficulties in keeping up with technological advancements and ensuring security.
Notably, core developers and commit indices are crucial for assessing development and innovation. Core developers represent the talent pool driving blockchain advancements, with Ethereum leading at 330, indicating strong ecosystem support. High commit counts, led by Ethereum at 9870, signify active protocol development and maintenance. Networks like Optimism and Arbitrum One show significant developer activity, vital for protocol improvement. However, networks with fewer developers like TRON may lag in innovation and security, emphasizing the importance of developer support for sustainable blockchain evolution.
2.3. Blockchain Analysis: Market Performance and Stability
Let’s analyze the market performance and stability of each blockchain’s native cryptocurrency by looking at the market cap of stablecoins, token price, and stablecoin market cap. The prevalence and usage of stablecoins within the ecosystem can measure stability and potential as a medium of exchange.
Blockchains
Stablecoins Market Cap
Price
Ethereum
71.288B USD
2.98K USD
TRON
51.506B USD
0.1 USD
BNB Smart Chain
4.732B USD
351.8 USD
Arbitrum One
2.226B USD
2 USD
Solana
2.206B USD
108.6 USD
Polygon POS
1.451B USD
1 USD
Optimism
O.632B USD
3.8 USD
Avalanche
1.206B USD
37.7 USD
Manta Pacific
Base
0.3B USD
Nil
According to the provided data, Ethereum leads with a substantial stablecoins market cap of 71.288B USD, indicating its dominant position. TRON follows closely, reflecting its strong market presence. BNB Smart Chain also shows a significant market cap, underscoring Binance’s influence. Stablecoin market caps are indicators of investor confidence and network stability, with higher values suggesting greater adoption and resilience. However, lower market caps like Base’s 0.3B USD may imply lower stability or adoption rates, emphasizing the need for sustained growth and market confidence.
2.4. Blockchain Analysis: Adoption and User Interest
Let’s examine the level of adoption and user interest by looking at token market cap, net inflows, and token price. A blockchain with increasing user interest and growing market capitalization may indicate a higher level of adoption.
Blockchains
Token Market Cap
Net Inflows
Token Price
Ethereum
358.397B USD
29.78M USD
2.98K USD
TRON
12.263B USD
Nil
0.1 USD
BNB Smart Chain
Nil
Nil
351.8 USD
Arbitrum One
2.564B USD
-110M USD
2 USD
Solana
47.893B USD
-0.7M USD
108.6 USD
Polygon POS
8.831B USD
-0.61M USD
1 USD
Optimism
3.618B USD
-5.25M USD
3.8 USD
Avalanche
13.865B USD
0.978M USD
37.7 USD
Manta Pacific
Base
nil
3.3M USD
Nil
The data depicts the net inflows in the top blockchains. Ethereum leads with a positive inflow of 29.78M USD, indicating investor interest. Base and Avalanche also show positive inflows, albeit smaller. However, Arbitrum One exhibits a substantial negative inflow of -110M USD, suggesting significant funds moving out. Optimism, Solana, and Polygon POS show moderate negative inflows.
The data presents the token market caps. Ethereum dominates with a market cap of 358.397B USD, reflecting its established position. Solana follows with 47.893B USD, showcasing its growing popularity. Avalanche, TRON, and Polygon POS also exhibit significant market caps. Meanwhile, Optimism and Arbitrum One show comparatively smaller market caps.
Let’s explore the adoption and user interest factor of the top blockchains using the above indices. Token market cap and net inflow data are crucial for analyzing blockchain adoption and user interest. Market cap reflects overall investor sentiment and network value, while net inflow indicates recent capital movements, highlighting investor activity and sentiment shifts.
Ethereum’s high market cap and positive net inflow suggest strong adoption and sustained user interest. Solana’s growing market cap supports its increasing popularity. However, substantial negative inflows in Arbitrum One and moderate negative inflows in Optimism, Solana, and Polygon POS may signal investor caution or shifting preferences, impacting adoption rates.
Overall, this report covers all the vital developments that the blockchain sector has witnessed in this month. It is the result of a fine blend of professional analysis and quality data.