The countdown begins: $BTC halving next week!
BRC20, $STAMP, BTCfi, and Runes are expected to enhance the halving effect.
However, Bitcoin’s second layer is the next generation ecosystem.
Top $BTC L2 will surge 20-100x in the coming months!
The upcoming Bitcoin halving is a key event in the cryptocurrency space.
In short, the halving will cut the mining reward in half.
expected outcome:
- Inflation rate cut in half
- BTC price could hit a new all-time high
- Mining farms adjust operations or switch to other tokens using POW
- Eventually, BTC growth could spark an altcoin boom
The Bitcoin halving reduced the reward to 3.125 BTC, increasing competition among miners.
Although miners’ revenues have been surging, the drop in hash prices following the halving has had an impact on earnings.
As transaction fees have dropped significantly, the pressure on profitability continues to increase, and as the halving approaches, the risk to profitability also increases.
As the Bitcoin network hash rate is on an upward trend, more and more miners are competing for the same rewards, making competition more intense.
In response to these challenges, some miners increased their sales of BTC, ultimately peaking at 1.6K BTC per day to OTC desks in late March — the highest volume since August 2023.
The Bitcoin ecosystem has grown extensively since the last halving, and the upcoming halving will have a significant impact on the entire ecosystem.
In the BTC ecosystem, my main concerns are as follows:
- BTC L2
- BRCfi
- Memecoins
- infrastructure
The BTC ecosystem continues to grow, and Ordinals plays a vital role in promoting the development of the BRC-20 ecosystem.
The BRCfi narrative remains compelling and I expect a large number of tokens to experience significant growth over the next two weeks.
Today we will focus on new layer 2 solutions for Bitcoin.
These solutions are built on top of the core Bitcoin blockchain to provide faster transactions, lower fees, and offer enhanced functionality.
Options like sidechains, ZK Rollups, Optimistic Rollups, and platforms like Stacks offer unique ways to improve Bitcoin applications.
◢ mvcglobal - $SPACE - $54 million
MVC is a first-layer smart contract public chain with unlimited potential.
It is a revolutionary blockchain built on top of Bitcoin technology. However, unlike Bitcoin, MVC achieves unparalleled transaction speeds, exponential scalability, extremely low fees, and remains decentralized.
Not quite L2 BTC, but well worth considering.
◢ BVMnetwork - $BVM - $130M MC
The Bitcoin Virtual Machine is the first modular blockchain meta-protocol that allows you to customize and launch a modular Bitcoin L2 blockchain using top-level modules, including:
- Summary
- Data availability
- Dapp modules such as Uniswap, Compound
- NFT Market
- Provides a new method for building Bitcoin L2
◢ ElastosInfo - $ELA - $98M MC
Elastos is a blockchain system that uses a hierarchical structure with a main chain for ELA circulation and side chains for DApps. It facilitates secure value transfer through a mechanism called Elastos main chain + side chain transfer.
Arbitrators ensure security, and sidechains can use any consensus mechanism. Elastos also allows for inter-transfers with other blockchain systems through cross-chain technology.
Features of Elastos:
• Smart Contract and EVM Compatibility: Enhanced interoperability with the Ethereum Virtual Machine
• Decentralized P2P network: Provides decentralized Internet services for nodes to operate in various Internet connection environments
• Basic services: support decentralized domain names, computing and storage for DApp development
• Improved consensus mechanism: POW-based sidechains simplify dApp development
•DPOS-based sidechain: Introduce sidechain based on DPOS consensus.
• Sidechain nodes can access the mainchain’s voting information to reach consensus
◢ naka_chain - $NAKA - $47 million MC
Naka is a low-cost, lightning-fast Bitcoin layer 2 blockchain designed for DeFi applications that accept Bitcoin for gas fees and is the equivalent of the EVM, allowing developers to migrate dapps from Ethereum to Bitcoin with minimal changes.
The Naka team has launched initial Bitcoin DeFi dapps, including swaps, futures, staking, and launchpad. They will also release developer APIs, SDKs, and tools for building more dapps, including lending, stablecoins, margin trading, and order book trading.
◢ mintlayer - $ML - $30m MC
Mintlayer is a proof-of-stake blockchain that acts as a sidechain to the Bitcoin network, providing direct BTC interoperability through atomic swaps. It simplifies DeFi activities by eliminating the need for wrapped Bitcoin or smart contract languages.
Mintlayer’s UTXO-based blockchain integrates tokenization, paving the way for future DeFi applications, including the tokenization of real-world assets.
Mintlayer features:
• Strengthening the consensus framework
• Use verifiable random functions to generate blocks.
• Prioritize chain density over length, work, or equity.
• Compatible with Lightning Network for fast transactions.
• Decentralized BTC Layer 2 operates on a proof-of-stake blockchain model.
• Users can pay transaction fees using ML or any MLS-01 token.
◢ MapProtocol - $MAP - $9000M MC
The Map Protocol Network is an EVM-compatible blockchain that supports heterogeneous blockchains and builds a gas-efficient light client verification network.
It provides the basic full-chain infrastructure for interoperability between blockchain-based assets, storage, and computing. The network serves as a Web3 user gateway and developer portal, enabling users and developers to use and build cross-chain applications without trusting central authorities.
Features of Map Protocol:
•Enhance compatibility with Ethereum Virtual Machine.
• Promote interoperability between assets.
•Expand interoperability to include on-chain storage and computing resources.
•Achieve cross-chain interoperability with BRC-201 tokens.
◢ MerlinLayer2
Merlin Chain is a Layer2 Bitcoin platform that combines a ZK-Rollup network, a decentralized Oracle network, and an on-chain BTC fraud proof module to improve Bitcoin's native assets, protocols, and products on Layer 1.
Merlin Chain aims to extend native innovation from Layer 1 to Layer 2, support all Bitcoin Layer 1 assets, build dApps in the “fully on-chain” spirit of Bitcoin, and launch community-driven assets.
Merlin Chain features:
• Provides scalability and low costs.
•Support popular Bitcoin protocols: BRC20, BRC420.
•Improve efficiency by leveraging ZK Rollup.
• Enhance user base and accessibility through decentralized oracles.
On Merlin Chain, SolvProtocol is worth a look.
Solv Protocol is a decentralized yield platform that tokenizes and aggregates premium yields across industries, serving as a unified liquidity gateway to reduce barriers and costs to investment opportunities.
They recently launched a program that lets users earn points by staking on their platform.
◢ Stacks - $STX - $5 billion MC
Main OG BTC L2
Stacks is a top-level Bitcoin L2 layer that enables developers to use Bitcoin as a secure base layer for applications and smart contracts.
It accelerates Bitcoin’s scalability and programmability through fast blocks, Bitcoin finality, and seamless decentralized BTC deposits and withdrawals. Stacks activates the Bitcoin economy, allowing users and developers to use BTC in applications and pay for gas with BTC.
Stacks features:
• Provides Proof of Transfer consensus to ensure transactions are settled in Bitcoin.
• Use the Clarity programming language to implement secure, decidable contracts.
• Provide knowledge about the complete state of Bitcoin.
• In 2024, all of Bitcoin’s hash power will be securing the stack.
• Includes sBTC, a 1:1 Bitcoin-backed asset that enables smooth liquidity of BTC.
• sBTC can be used to pay gas fees after issuance.
• Stacks (STX) is the first token to receive a SEC qualified sale.
◢ build_on_bob
BOB is a platform that drives innovation in DeFi and Bitcoin. It provides developers with a comprehensive toolkit to facilitate seamless development and exploration.
The project uses the Ethereum Virtual Machine (EVM) to create and execute smart contracts, ensuring compatibility with existing development tools, wallets, key block explorers, and data analysis infrastructure.
Features of BOB:
• Focus on scaling, user experience, security, privacy, rollup layer, and EVM compatibility.
• Provides features such as account abstraction, smart contract wallet, and social recovery.
• Ensure privacy by preserving protocols and allowing confidential transactions.
• Can be rolled into Ethereum for easy onboarding and security.
At the end of March, the project kicked off the first season of their BOB Spice Pledge.
People should deposit and lock up assets to harvest BOB Spice.
◢ Photon_L2 — $PTON
Photon is a high-performance Bitcoin L2 that integrates optimistic execution, parallel processing capabilities, and data integrity. It is built on Bitcoin's secure L1 and is designed to enable scalable decentralized applications, providing efficiency and flexibility comparable to the Ethereum ecosystem. Photon goes beyond traditional L2 solutions.
Photon Mainnet will use Bitcoin and Celestia to provide data availability, thereby improving security and cost-efficiency. Data verification will be performed on Bitcoin, while Photon L2 will inherit its security and decentralization.
coming soon.
◢ bounce_bit — $BOUNCE
BounceBit is the first native BTC staking chain, offering a unique dual-token staking system that leverages the security of Bitcoin while ensuring full compatibility with the Ethereum Virtual Machine.
The innovative platform secures its network by staking Bitcoin and BounceBit tokens, laying a solid foundation for re-staking products in the DeFi ecosystem.
BounceBit features:
• BTC Re-Pledge Infrastructure: Providing secure re-pledge infrastructure for various products.
• Dual-token staking system: Validators stake BTC and BounceBit’s native token, bridging the Bitcoin and Ethereum ecosystems.
• CeFi+DeFi yield mechanism: combining the yield mechanisms of centralized finance and decentralized finance.
• Secure ecosystem infrastructure: Restaked BTC ensures the security of critical infrastructure.
• Earn yield across multiple networks: Enables BTC holders to earn yield across networks.
coming soon.
It is worth mentioning that some of these chains are still in their early stages. This could give you a significant advantage.
➜ moleculebtc - The first SolanaVM Bitcoin layer 2
➜ Dovi_L2 - Community-driven Bitcoin Layer2
➜ TunaChain - The first modular layer 2 on Bitcoin
➜ AINNLayer2 - AI-driven modular L2 on Bitcoin
➜ BSquaredNetwork - The first Bitcoin DA layer
➜ babylon_chain ——Bitcoin equity agreement
➜ BotanixLabs - EVM L2 on Bitcoin
➜ citrea_xyz - The first Bitcoin Rollup using zero-knowledge technology
➜ BTClayer2 - Taproot-based EVM compatible with BTC Layer2
➜ nubit_org - The first Bitcoin native data availability layer
➜ Coredao_Org — A Bitcoin-powered, EVM-compatible blockchain
➜ satoshivm - A contributor to Bitcoin ZK Rollup Layer 2
➜ syscoin - blockchain that extends Bitcoin's PoW to Web3 via DA and RolluxL2
➜ GeliosOfficial - A community-owned dApp layer on the Bitcoin network
➜ BiopDAO - The first Bitcoin L2 based on Optimistic Rollup
➜ RIFtechnology - the largest and longest running Bitcoin L2
