Bitcoin Layer 2 TVL Soars Above $2 Billion

Bitcoin Layer 2 networks and sidechains are attracting large inflows amid an uptick in activity.

By: Squiffs Loading...

Bitcoin symbols interconnected by digital lines

Bitcoin scaling solutions are surging, with the sector’s total value locked (TVL) growing 105% in the past 30 days.

Bitlayer’s iTVL has soared 720% over the last month to $250 million. The largest Bitcoin L2, Merlin Chain, also sits at an all-time high TVL of $1.14 billion.

Top Bitcoin L2s and Sidechains
Top Bitcoin L2s and Sidechains

While there are no clear catalysts for the spike in activity, both Bitlayer and Merlin Chain are actively running incentive programs.

On May 20, Bitlayer kicked off its dApp leaderboard competition, which offers teams listing funds and liquidity support, as well as 20 million of its yet to be released $BTR token. The program is split into two epochs, with the first concluding on June 23 and the second slated to end sometime in August.

Meanwhile, Merlin Chain unveiled its “Onchain Summer” incentives program on June 12, which will run until July 5 and features 3 million $MERL tokens distributed as rewards.

Merlin Chain Price chart
Merlin Chain Price

Despite the ecosystem growth, $MERL is down 65% since its launch on April 19, sitting at a fully diluted value (FDV) of $810 million.