Blockchain Monthly Report For May 2024

Published on: Jun 05, 2024|5 min read

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London: 5 June 2024 (TraderMade): This Blockchain Monthly Report for May 2024 provides a good analysis of the top layer 1 and layer 2 blockchains, offering a clear understanding of the entire blockchain market.

We perform both general and in-depth analyses, examining selected blockchains’ economic activity, user interest, development, scalability, latency, cost, and market performance. Accurate data and insightful analysis are ensured using trusted sources and advanced methodologies.

Key Takeaways:

Ethereum and Arbitrum One Dominate: Ethereum leads layer 1 chains with 81.13% dominance and $66.798B TVL, while Arbitrum One tops layer 2 chains with 29.50% dominance and $3.136B TVL.
Significant 30-Day Changes: Core and Linea register the highest 30-day changes among all blockchains, with +285.4% and +125.6%, respectively.

Blockchain General Analysis

In the general analysis section, we evaluate blockchains using Total Value Locked (TVL) and Dominance indexes to identify the top five blockchains this month. Layer 1 and layer 2 chains are examined separately.

The 30-day Change index helps us understand how the top five chains in both categories have changed over the last 30 days. Top Five Layer 1 Chains by TVL and Dominance: Ethereum, BNB Smart Chain, Solana, Bitcoin, and Avalanche are the top five blockchains in the Layer 1 segment based on dominance and TVL.

Ethereum has an 81.13% dominance, followed by BNB Smart Chain and Solana, which have 6.81% and 5.83%, respectively. Bitcoin has a 1.42% dominance, and Avalanche has a 1.22% dominance. Over the past 30 days, Bitcoin is the only blockchain showing a negative 30-day change at -2.6%.

Solana marks the highest 30-day change of +28.1%, followed by Ethereum with +23.3%. Avalanche and BNB Smart Chain exhibit minimal positive changes of +7.8% and +5.2%, respectively. Top Five Layer 2 Chains by TVL and Dominance: Arbitrum One, Blast, Base, Polygon POS, and Optimism are the top five blockchains in the Layer 2 segment, based on TVL and Dominance.

Arbitrum One leads with 29.50% dominance, followed by Blast and Base with 18.52% and 16.66%, respectively. Polygon POS and Optimism exhibit 9.28% and 8.42%, respectively. All top five-layer 2 chains show positive 30-day changes.

Blast registers the highest positive 30-day change of +37.5%. Arbitrum One and Base follow with +18.9% and +12.4%, respectively. Polygon POS depicts a change of +8.4%, and Optimism presents a minimal change of +2.0%.

Best Blockchains This Month By 30-Day Change

This section focuses solely on the 30-day change indicator, considering all chains together to identify the best-performing blockchains based on their 30-day change. Core registers the highest 30-day change of +285.4%, followed by Linea with +125.6%.

Scroll, StarkNet, and Blast record +63.9%, +46.0%, and +37.5% changes, respectively. Polygon zkEVM, Solana, and Sui also register +28.1%, +28.1%, and +26.3% changes, respectively. Ethereum and Arbitrum One, the top layer 1 and layer 2 chains by dominance and TVL, are in the ninth and tenth positions, with +23.3% and +18.9% changes, respectively.

Blockchains In-Depth Analysis

In this section, we conduct an in-depth analysis of the top five blockchains, examining various aspects, including economic activity, user interest, development and innovation, scalability, latency, cost, and market performance. We analyze the top five-layer 1 and layer 2 chains separately.

Blockchain Economic Activity Analysis: We use four indices, revenue, fees, volume, and TVL, to perform the economic activity analysis.
Top Layer 1 Chain Economic Activity Analysis: Ethereum, with the highest TVL of $66.798B, records the highest revenue of $6.27M and volume of $2.215B. Solana follows in revenue with $935.09K and volume with $1.129B. BNB Smart Chain and Avalanche display moderate values in both revenue and volume.

Bitcoin, with a minimal volume of $237.88K, is in the fifth position.

Top Layer 2 Chain Economic Activity Analysis: Base, with the third-highest TVL of $1.768B, dominates in revenue with $208.4K. Arbitrum One, with the highest TVL of $3.136B, follows in revenue and volume.

Blast shows a comparatively lower volume, while Polygon POS and Optimism register minimal values in both revenue and volume.

Blockchain User Interest Analysis: We perform the user interest analysis using the number of users and transaction count indices.
Top Layer 1 Chain User Interest Analysis: BNB Smart Chain, with 1.69M users, has the highest transaction count, 129.89M. Solana leads in the number of users, with 2.2M. Ethereum, with 1.34M users, ranks third in the number of transactions. Bitcoin and Avalanche exhibit minimal values in both indices.
Top Layer 2 Chain User Interest Analysis: Blast, with 0.34M users, has the highest transaction count, 37.79 M. Polygon POS is second in the number of users, with 0.53 M. Arbitrum One, with 0.25M users, ranks third. Base and Optimism exhibit minimal values in both indices.
Blockchain Development and Innovation Analysis: We use the number of contributors, commits, and developer activities indices to perform the development and innovation analysis.
Top Layer 1 Chain Development and Innovation Analysis: Ethereum leads in developer activities, with 245 contributors and 1,152 commits. Solana and BNB Smart Chain follow, with 134 and 123 contributors, respectively. Bitcoin and Avalanche exhibit minimal values in all indices.
Top Layer 2 Chain Development and Innovation Analysis: Blast, with 73 contributors and 279 commits, leads in developer activities. Arbitrum One and Optimism follow with 65 and 58 contributors, respectively. Base and Polygon POS exhibit minimal values in all indices.

Conclusion

Ethereum and Arbitrum One continue to dominate the layer 1 and layer 2 segments, respectively, in terms of dominance and TVL. Blast and Solana show the highest 30-day changes among layer 2 and layer 1 chains, respectively.

The in-depth analysis of the top five blockchains reveals Ethereum’s dominance in economic activity, Solana’s prominence in user interest, and Ethereum’s and Blast’s superiority in development and innovation.