The public blockchain sector faced significant headwinds in June 2024. Despite a broader market correction, certain networks demonstrated resilience and innovation, particularly in Layer2 development and ecosystem expansion. This report analyzes key trends across market performance, total value locked (TVL), Layer1 and Layer2 developments, blockchain gaming, and funding activity.
Market Overview: Pressure on Bitcoin, Mixed Signals from Ethereum
June saw mounting selling pressure across the crypto market, primarily driven by uncertainty surrounding Bitcoin. The announcement by the Mt. Gox bankruptcy trustee on June 24 that Bitcoin and Bitcoin Cash repayments would begin in July sparked fears of large-scale asset liquidation. This, combined with net outflows from U.S. spot Bitcoin ETFs in the second half of the month, contributed to bearish sentiment.
Government-held Bitcoin sales further intensified the pressure. Germany’s federal agency transferred nearly 4,000 BTC seized in 2013 to exchanges, while the U.S. government moved 3,940 BTC from a convicted drug trafficker’s wallet to Coinbase.
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Although progress on U.S. spot Ethereum ETF filings provided a positive catalyst, Bitcoin’s weakness spilled over into the broader market, affecting investor confidence across public blockchains.
Public Blockchain Performance: Declining Market Cap with Notable Exceptions
By the end of June, the total market capitalization of public blockchain tokens had declined by 7.7%, settling at $1.95 trillion. Bitcoin and Ethereum remained dominant, holding 63.3% and 21.2% market share respectively, followed by BNB Chain (4.4%) and Solana (3.5%).
Bitcoin’s price dropped from $67,730 to $62,795 (-7.3%), while Ethereum fell from $3,820 to $3,444 (-9.8%). Despite this downturn, three top-15 blockchain tokens posted gains: Toncoin, TRON, and Kaspa.
- Toncoin surged amid the launch of TON’s Open League token incentive program and rising popularity of Telegram-based games, reaching an all-time high of $8.20 mid-month.
- TRON rose 10.8%, continuing its upward trajectory since February 2024.
- Kaspa, leveraging its blockDAG architecture, saw a remarkable 37.7% increase, hitting $0.19 on June 30. Its growing appeal was underscored by MARA, a major Bitcoin miner, expanding operations to include Kaspa mining—marking a strategic shift toward multi-asset mining.
Total Value Locked (TVL): Broad Decline with Select Growth
The total value locked across public blockchains fell 18.7% to $72.2 billion. Ethereum, TRON, and BNB Chain retained leadership positions in TVL.
Among the top 15 chains, only TON reported TVL growth—up 106.8%. This surge was fueled by strong user engagement in its gaming and social applications.
Notably, Core Chain experienced explosive growth with a 227.7% increase in TVL. This momentum followed Coinbase adding CORE to its listing roadmap in late May. Strategic initiatives like the Core Ignition Drop, BTCfi Summer Hackathon, and growing DeFi integrations helped drive adoption.
Solana Foundation also advanced mainstream accessibility by launching Actions and Blinks—tools that turn websites, apps, social media posts, and QR codes into on-chain transaction starters. These innovations aim to transform the internet into a decentralized network of interactive blockchain touchpoints.
Key Layer1 Developments in June 2024
- BNB Chain: BNB hit a new high of $710; Haber hard fork upgrade promises up to 90% reduction in gas fees.
- Solana: 21Shares submitted an S-1 filing for a Solana ETF with the SEC.
- NEAR: NEAR Foundation launched Nuffle Labs with $13 million in funding.
- Sui: Sui Bridge testnet launched with an incentive program.
- Polygon: Polygon ID rebranded to Privado ID after spinning off from Polygon Labs.
- Ronin: Announced plans to build a Layer2 using Polygon’s Chain Development Kit (CDK).
Layer2 Ecosystem: Divergent Trajectories Amid Market Downturn
While U.S. spot Ethereum ETF developments continued to progress, Ethereum Layer2 solutions faced headwinds during the market correction.
- Arbitrum and Optimism, the two largest Layer2s by TVL, saw declines of 10.5% and 22.2% respectively.
- Blast dropped 22.0% post-Phase 1 airdrop.
- In contrast, Base and Linea maintained stable TVL levels.
However, Scroll stood out with a 42.8% TVL increase following the launch of its Scroll Sessions Points program on June 21. Session One focused on rewarding liquidity providers in DEXs, driving immediate engagement.
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Airdrops: Hype vs. Community Backlash
Airdrops remained central to user acquisition strategies in June, with major campaigns from zkSync, Blast, and LayerZero generating buzz—and controversy.
- zkSync faced criticism over prolonged eligibility periods and perceived unfair distribution.
- LayerZero drew backlash for strict anti-Sybil measures and mandatory donations to claim rewards.
- Blast users expressed dissatisfaction with complex mechanics and lower-than-expected yields.
Despite these issues, airdrops remain powerful tools for bootstrapping communities. Future success depends on improving transparency, fairness, and user experience.
Bitcoin’s Layer2 ecosystem continued its upward trajectory since Q4 2023. Networks like Merlin Chain, Bitlayer, and Rootstock gained traction, signaling a vibrant summer of innovation in the Bitcoin ecosystem.
Notable Layer2 Developments
- Arbitrum: Daily revenue and profit hit record highs following ZRO (LayerZero) airdrop claims.
- Optimism: OP Stack advanced to Stage 1.
- Starknet: StarkWare announced upcoming Layer3 deployment.
- Blast: Blast Foundation unveiled its vision.
- Rootstock: SushiSwap expanded to the network.
- Merlin Chain: Launched a $210 million MERL ecosystem incentive program.
Blockchain Gaming: Shifting User Dynamics
In June, there were 1,580 active blockchain games. BNB Chain (22.4%), Polygon (19.5%), and Ethereum (16.1%) led in game count.
Daily active users (DAU) totaled 3 million, led by Ronin, Polygon, and NEAR—though all faced challenges:
- Ronin’s DAU share dropped from 29.8% to 18.4% due to declining activity in Pixels.
- Polygon’s share fell from 15.1% to 8.0% as Matr1x FIRE saw a 31.6% DAU decline.
Conversely, Saakuru Verse (Oasys L2) experienced explosive growth—from 18,000 DAU on June 21 to 464,000 on June 30—with an average weekly DAU of 379,000 in its final week. This surge was driven by PlayGround’s successful game launches: Copycat Killer, Panic, and Parkour Battle. If sustained, Saakuru Verse could soon rank among the top blockchain platforms by user activity.
Meanwhile, opBNB achieved strong engagement with an average DAU of 285,000 in its last week—nearly 10% of total blockchain gaming users.
Public blockchains are increasingly supporting game developers through dedicated grant programs and specialized Layer2 solutions. Ronin’s plan to build a game-focused L2 using Polygon CDK mirrors strategies adopted by Avalanche, Oasys, and SKALE—highlighting a growing trend toward vertical-specific scalability.
Funding Landscape: Decline in Capital Inflow
June recorded 11 funding rounds totaling $71.5 million—a 20.3% decrease from May—with three deals undisclosed.
Notable raises included:
- Decent Land Labs: Raised $3 million to develop WeaveVM—an innovative sovereign L1 combining EVM compatibility with Arweave’s scalable storage.
- Sonic: Secured $12 million in Series A funding to advance its Solana-based gaming L2 infrastructure after pivoting from mobile game development due to scalability constraints.
Frequently Asked Questions (FAQ)
Q: Why did public blockchain market cap decline in June?
A: The decline was primarily due to macro pressures on Bitcoin—including Mt. Gox repayment fears and government BTC sales—leading to broad risk-off sentiment across crypto markets.
Q: Which blockchains showed growth despite the market downturn?
A: Toncoin, TRON, and Kaspa saw price increases, while TON and Core Chain recorded significant TVL growth due to strong ecosystem activity and strategic partnerships.
Q: How are airdrops influencing Layer2 adoption?
A: Airdrops effectively drive user onboarding but face criticism over fairness and complexity. When executed well, they boost engagement; poorly designed ones risk community backlash.
Q: What role do specialized Layer2s play in blockchain gaming?
A: Game-specific Layer2s reduce costs and latency while offering tailored features for developers—critical for scaling play-to-earn and real-time gaming experiences.
Q: Is the decline in funding a concern for long-term growth?
A: While short-term funding dipped, strategic investments in infrastructure like Sonic and WeaveVM indicate continued confidence in foundational innovation.
Q: How are blockchains making it easier for non-crypto users to engage?
A: Tools like Solana’s Actions and Blinks simplify transactions by embedding them directly into web and social platforms—lowering barriers for mainstream adoption.
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