21 Top Blockchain Networks: A Bull Market Performance Review

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The 2020–2022 crypto bull market marked a transformative era for public blockchains. As foundational infrastructure in the decentralized ecosystem, blockchain networks saw explosive growth, innovation, and fierce competition. This comprehensive review analyzes the performance, evolution, and strategic dynamics of 21 leading public chains—highlighting key trends, standout performers, and the underlying forces that shaped one of the most dynamic periods in blockchain history.

Public Chain Market Performance (2020–2022)

Public blockchains serve as the backbone of the cryptocurrency ecosystem, supporting smart contracts, decentralized applications (dApps), and cross-chain interoperability. The 21 chains analyzed here were selected based on market capitalization (top 100), established ecosystems, and sustained community interest.

To evaluate overall sector performance, we developed the Lucida Chain Index, a weighted metric reflecting real-time market dynamics.

How the Chain Index Was Calculated

The Chain Index provides a consolidated view of public chain performance using a liquidity-weighted methodology:

Daily Index Value = Σ (Closing Price × Weight Coefficient)
Weight Coefficient = 30-Day Average Trading Volume / Total Volume Across All Sampled Chains

By plotting this index on a logarithmic scale, we gain clearer insights into long-term trends and relative performance against major benchmarks like Bitcoin.

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Superior Risk-Return Profile During the Bull Run

The Lucida Chain Index surged 3,013% from its lowest point on March 16, 2020—shortly after the "Black Thursday" crash—to its peak on May 11, 2021. In contrast:

Compared to Bitcoin, public chains delivered stronger risk-adjusted returns during the bull phase. Notably, they did not exhibit excessive downside during early bear market phases, suggesting comparable defensive qualities—though prolonged downturns may still trigger catch-up declines.

Divergent Performance Among Top Public Chains

While the sector thrived collectively, individual chain performances varied dramatically.

Top Performers: From Double to Triple-Digit Multiples

These results reveal a clear performance tiering:

This divergence underscores a critical insight: not all public chains are equal. Strategic selection is essential to avoid underperforming assets.

Risk Exposure: Drawdowns and Recovery Cycles

Most chains experienced their steepest corrections between February and May 2021, with average drawdowns reaching 59.9% over a 69-day period. However, recovery times varied significantly.

BNB emerged as the most resilient, with only a 36.9% drawdown lasting just nine days—highlighting its strong investor confidence and ecosystem stability during volatility.

Shifting Landscape: The Rise of Multi-Chain Ecosystems

Ethereum long dominated the smart contract space, maintaining over 50% market share in total value locked (TVL) and developer activity. But starting in early 2021, a powerful shift began.

Ethereum’s Declining Dominance

From February 2021 onward, Ethereum’s TVL and market cap share began to erode as alternative Layer 1 networks gained traction:

Despite Ethereum’s continued leadership in security and decentralization, its high gas fees created fertile ground for competitors.

Data note: TVL figures sourced from DefiLlama (available from August 2020). Some chains—including Polkadot and IOTA—lack full TVL reporting but remain included for qualitative analysis.

What Drove the 2021 Bull Market in Public Chains?

Several interlocking factors fueled the rise of new blockchain platforms.

DeFi Overload on Ethereum

The 2020 "DeFi Summer" ignited unprecedented demand for Ethereum-based financial applications. As Compound pioneered yield farming, transaction fees skyrocketed:

This congestion created an opening for scalable alternatives.

BNB Chain: First Mover Advantage

Launched in September 2020, BNB Chain (formerly BSC) capitalized on Ethereum’s limitations by offering:

Within five months, it surpassed Ethereum in daily transactions and reached 1 million unique addresses—a milestone that signaled mass adoption.

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Incentive-Driven Growth: The New Norm

Following BNB’s success, other chains launched aggressive incentive programs:

These efforts proved effective: EVM-compatible chains could rapidly onboard users and protocols from Ethereum’s mature ecosystem.

Solana’s Ascent: Speed Over Decentralization

While most competitors focused on Ethereum compatibility, Solana pursued a different path—prioritizing speed and developer incentives over strict decentralization.

Key advantages:

Solana’s team hosted hackathons, funded startups, and supported NFT marketplaces like Magic Eden—now handling over 97% of Solana NFT volume.

However, repeated network outages raised concerns about reliability. Critics argue Solana sacrifices security and decentralization for performance—a trade-off that challenges its long-term sustainability.

NFTs: The Second Wave of Demand

After DeFi, NFTs became the next major driver of blockchain usage:

Even during market downturns, Solana’s NFT activity grew—proving resilient demand beyond speculative cycles.

Why Cosmos and Polkadot Underperformed

Despite strong technical foundations, Cosmos (ATOM) and Polkadot (DOT) lagged behind peers in price appreciation (ranks #12 and #15 respectively).

Reasons include:

Their experience highlights a crucial lesson: technical superiority alone doesn’t guarantee market success. Ease of use, developer support, and ecosystem incentives matter just as much.

Building Moats: How Blockchains Establish Long-Term Value

Post-bull market consolidation revealed which chains built durable competitive advantages—or "moats."

Ethereum: The Unshakable Leader

Despite rising competition, Ethereum remains unmatched in:

Its transition to proof-of-stake via EIP-1559 reduced inflation and improved fee predictability. Layer 2 solutions like Arbitrum and Optimism now extend scalability without compromising security.

Ethereum’s role as the industry benchmark endures—even as multi-chain reality takes hold.

BNB Chain: Centralized Powerhouse

Backed by Binance’s vast user base and capital reserves, BNB Chain offers:

Yet its centralized validator set and reliance on Binance raise decentralization concerns—especially after multiple high-profile hacks targeting its ecosystem.

Solana: High Performance at a Cost

Solana built a robust NFT and DeFi ecosystem through aggressive funding and superior UX. However:

Its future depends on balancing performance with resilience.

Frequently Asked Questions

What made certain blockchains outperform others in the 2020–2022 bull run?

Chains that offered low fees, EVM compatibility, and aggressive incentive programs—like BNB Chain and Polygon—grew fastest by capturing demand spilling out from congested networks like Ethereum.

Why did Solana rise so quickly despite technical risks?

Solana combined blazing-fast speeds, strong VC backing, and generous developer grants. These factors enabled rapid ecosystem growth—even amid recurring network instability issues.

Is Ethereum still relevant amid growing competition?

Absolutely. Ethereum leads in developer adoption, security, and ecosystem maturity. Its ongoing upgrades ensure it remains central to the multi-chain future.

Can new blockchains challenge established players today?

It's harder now than in 2020. Success requires more than technology—it demands funding, marketing, and community building. Most new entrants fail to gain traction without strong backing.

What defines a blockchain’s "moat"?

A sustainable moat includes: large developer base, deep liquidity, strong brand recognition, robust tooling, and active governance. Networks like Ethereum have multiple layers of defense.

Will another bull market favor different blockchains?

Possibly. If scalability becomes less critical than privacy or interoperability, newer architectures (e.g., ZK-based chains) could lead next time. Adaptability will be key.

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Final Thoughts

The 2020–2022 bull cycle was defined by fragmentation and innovation. While Ethereum held its ground, challengers like BNB Chain, Solana, and Polygon reshaped expectations for what public blockchains can achieve.

Success came not just from technology—but from timing, incentives, and ecosystem strategy. As markets evolve, only those with deep moats, resilient infrastructure, and vibrant communities will endure.