Bitcoin L2s projects see $94.6M investment increase

Bitcoin Layer-2 (L2) solutions are attracting significant investment and gaining the attention of users. This growing drag suggests the markets may be on the brink of a new narrative.

With the continued development and investment of Bitcoin L2 technologies, a new chapter in the history of Bitcoin can be opened.

Continue to pull Bitcoin Layer-2s

According to a recent report by Michael Novogratz's Galaxy, Bitcoin Layer-2 projects have collectively raised an impressive $94.6 million in the second quarter of 2024. Like Bitcoin Layer-2.

Bitcoin Layer-2 solutions are protocols built on top of the Bitcoin base layer to increase scalability and functionality. These solutions process transactions outside of the main blockchain, solving limitations in transaction time, validation time and costs. They keep the Bitcoin network secure by enabling advanced features like complex smart contracts. As a result, Bitcoin services will expand into areas such as payments, DeFi, NFTs and other markets.

Read more: A Beginner's Guide to Layer-2 Scaling Solutions

They include Mezzo, Bitlayer and Avalon Labs, which won Round 2 of the BNB Incubation Alliance at Bitcoin 2024. Mezo completed a $7.5 million strategic funding round led by Ledger Cathay Fund on July 26. This brings Mezzo's total funding to $30 million since its April 2024 debut. Mezo is Bitcoin L2 that allows HODLers to get production.

Bittler, meanwhile, raised $11 million in a Series A funding round led by Franklin Templeton.

Bitlayer said: “Franklin Templeton's participation is a significant milestone as it is the first Bitcoin Layer 2 infrastructure project to secure strategic investment from an EFF-licensed institution.

A significant development in finance shows confidence and support for solutions.

L2s Can Fuel New BTC Bullish Wave.

Meanwhile, Lightning Network stands among the most popular Bitcoin L2s. Another, Stakes (STX), advertises itself as “the premier Bitcoin L2 for smart contracts, applications, and defi.” The STX community approved the Nakamoto update earlier in the year, which has made the network faster and faster block times.

“Bitcoin Layer-2 has been a long-neglected category in crypto, but this narrative is about to explode. Stack's Nakamoto Update is coming at the end of August and will open up Bitcoin's programmability, allowing smart contracts and dApps to connect directly to Bitcoin via sBTC. Stack's support for Bitcoin-based Apps open up a whole new realm of possibilities,” commented popular user Sakemate.

The increasing focus on expanding solutions suggests a shift in the narrative around Bitcoin in 2024. As Bitcoin continues to grow and adapt to the needs of the digital economy, this new narrative could drive a wave of upside for the asset, potentially attracting more traders. to the BTC chain and network.

Read more: Beginner's tutorial to start using Lightning Network

The resulting strength in the BTC market is causing capital to refocus on Layer-2 tokens, including STX, Elastos (ELA), SatoshiVM (SVM) and BVM (BVM).