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As the possibility of the Federal Reserve launching a rate cut in September increases, market liquidity will significantly improve and funds will continue to flow into the Bitcoin market.This wave of capital influx will inevitably drive the price of Bitcoin to rise sharply and attract more investors’ attention.
When the price of Bitcoin rises, it will trigger the “Love House and Wu” effect – investors are very interested in various projects and applications in the Bitcoin ecosystem.It can be foreseen that this virtuous cycle of improvement in liquidity and rising Bitcoin prices will lay a solid foundation for the prosperity of the Bitcoin ecosystem.
Looking back at the popularity of Ordinals before the surge last year, the wealth effect brought by the inscriptions made the market begin to focus more attention on the Bitcoin ecosystem.As the market gradually recovers, this article will discuss potential coin issuance projects in the Bitcoin ecosystem to help everyone seize new opportunities in the bull market.
01Project inventory
L2 main network
1. Bitlayer:The total financing is US$16 million, invested by Framework Ventures, OKX Ventures and others.
It is the first Bitcoin security equivalent Layer2 network based on BitVM, committed to becoming the computing layer of Bitcoin, introducing ultra-scalability and inheriting Bitcoin’s L1 security, providing users with high throughput and low-cost transaction experience..
2. BOB (Build on Bitcoin):The total financing is $11.6 million, invested by Castle Island, Bankless Ventures and others.
A hybrid Layer2 that combines Bitcoin’s security and Ethereum smart contract flexibility supports Bitcoin ecosystems such as Ordinals, Lightning and Nostr.
3. B² Network:The total financing has not been disclosed and is invested by HashKey Capital, OKX Ventures and others.
The Bitcoin Layer 2 solution based on zero-knowledge proof is designed to increase transaction speed and expand application diversity while ensuring security and supporting Turing’s complete smart contracts.
4. BEVM:The total financing has not been disclosed and is invested by Skyland Ventures, Waterdrip Capital, etc.
A fully decentralized Bitcoin Layer 2 solution, compatible with Ethereum Virtual Machine (EVM), is designed to expand Bitcoin’s smart contract capabilities and use native Bitcoin (BTC) as fuel fee.
5. Rollux:The total financing has not been disclosed and is invested by Dewhales Capital and others.
A Bitcoin-based EVM is compatible with Optimistic Rollup platform, aiming to improve Bitcoin’s scalability and smart contract functions, and provide developers with a safe and low-cost decentralized application environment.
L2 Test Network
1. Babylon:The total financing is US$96 million, invested by Paradigm, Polychain, Binance Labs and others.
This protocol is a Bitcoin staking protocol that allows users to lock Bitcoin on the Bitcoin network to provide security for other POS chains while obtaining staking benefits.
2. Mezo:The total financing is US$28.5 million, invested by Pantera Capital, Ledger Cathay Capital and others.
The EVM-compatible Bitcoin economy layer aims to drive the circular Bitcoin economy beyond purely “save technology” by providing applications that promote the use of Bitcoin tokens.
3. Botanix:The total financing is US$11.5 million, invested by Polychain, ABCDE Capital and others.
The decentralized Turing complete L2 EVM built on Bitcoin is composed of two core components, Ethereum Virtual Machine (EVM) and Spiderchain, combining the security of Bitcoin and the ease of use of EVM.
4. Nubit:The total financing is US$11 million, invested by Polychain, OKX Ventures and others.
The first Bitcoin DA layer aims to effectively expand Bitcoin’s data capacity and provide support for applications such as Ordinals, Layer 2 solutions, oracles, etc., thereby improving the scope and efficiency of the Bitcoin ecosystem.
5. Arch Network:The total financing is US$7 million, invested by Multicoin Capital, OKX Ventures and others.
Bitcoin-based Layer 2 adopts Rust-based zero-knowledge virtual machine ArchVM, combined with a decentralized validator network, to provide developers with an efficient and scalable application environment.
6. Bitfinity Network:The total financing is US$7 million, invested by Polychain, ParaFi Capital and others.
An EVM-compatible Bitcoin Layer 2 network adopts the Solidity language and utilizes the IC’s unique architecture and Chain Key technology. It is comparable to traditional network services in terms of storage capacity and processing speed, without paying gas fees.
7. Zulu Network:The total financing is $3 million, invested by Waterdrip Capital, Cryptogram Venture and others.
Based on Bitcoin, Layer 2 adopts a unique two-layer architecture to extend the capabilities of the Bitcoin network.EVM compatibility is achieved through ZuluPrime (L2), while ZuluNexus (L3) acts as the third layer of Bitcoin, providing additional security guarantees.
8. Citrea:The total financing is US$2.7 million, invested by Galaxy, Delphi Digital, etc.
The first Layer 2 in the Bitcoin ecosystem based on zero-knowledge proof adopts a unique two-way pegging architecture to realize the first universal trust minimization Bitcoin Layer 2 solution, bringing more powerful to BitcoinProgrammability and application scenarios.
9. Fractal Bitcoin:The total financing was not disclosed and developed by a collaboration between UniSat and Block Space Force.
The Layer 2 extension solution based on Bitcoin core code aims to improve Bitcoin’s transaction processing power and speed by recursively creating infinite layers while maintaining full compatibility with the Bitcoin main chain.
L2 Pre Test Network
1. Lorenzo Protocol:The total financing has not been disclosed and is invested by Binance Labs and others.
The decentralized liquid staking platform based on Babylon aims to provide users with safe and convenient Bitcoin staking services.Through the liquidity finance layer, the protocol allows users to pledge Bitcoin and obtain liquidity pledged tokens.
2. QED Protocol:The total financing is $9 million, invested by Blockchain Capital, Arrington Capital and others.
The zk native execution layer based on Bitcoin focuses on zero-knowledge proof verification technology, and supports widespread applications such as decentralized exchanges and DeFi on Bitcoin through Taproot upgrades, promising to provide high-speed trading and global state access.
3. GOAT Network:The total financing is $5 million, invested by Metis Foundation and others.
The first Bitcoin Layer 2 solution to share ownership and mining rewards through a decentralized sorter introduces unique OP technology to expand the Bitcoin network through Bitcoin Rollup.
4. Nexio:The total financing is US$2.2 million, invested by Lattice Capital, HTX Ventures and others.
An innovative Bitcoin expansion solution leverages parallelized Rollup technology, designed to support over 30,000 transactions per second while keeping the handling fee below $0.01.
DeFi main network
SolvProtocol:The total financing is $10 million, invested by Binance Labs, The Spartan Group and others.
A full-chain basic income agreement that provides currency-based asset revenue increase services, and users can deposit BTC into Solv Protocol to obtain Solvbtc.
DeFi Test Network
1. BitSmiley:The total financing has not been disclosed and is invested by ABCDE Capital, OKX Ventures and others.
A stablecoin lending protocol based on the Bitcoin ecosystem combines over-solidated stablecoin protocol, trustless loan protocol and derivatives protocol to fill the demand for stablecoins and lending infrastructure in the Bitcoin ecosystem.
2. Chakra:The total financing has not been disclosed and is invested by ABCDE Capital, Bixin Ventures and others.
The Bitcoin restaking protocol powered by zero-knowledge proof uses ZK-STARKs technology and middleware chain to solve the trust problem with intermediaries.A partnership with Nubit has been established to enhance the Bitcoin ecosystem in a modular way.
DeFi Pre Test Network
Lombard:The total financing is US$16 million, invested by Polychain, OKX Ventures and others.
A Bitcoin re-staking protocol promotes the development of the Bitcoin staking ecosystem by allowing users to generate revenue by cross-chain mobile without decentralizing liquidity.
RGB+ Lightning Network Main Network
BiHelix:The total financing has not been disclosed and is invested by Waterdrip Capital, LK Venture, UTXO, Satoshi Labs and others.
A Bitcoin ecological infrastructure based on Bitcoin native blockchain, combining RGB protocol and Lightning Network to build optimized nodes.The project aims to lower the development threshold and increase the application scenarios of Bitcoin.
RGB++ Pre Test Network
UTXO Stack:The total financing has not been disclosed and is invested by ABCDE Capital, OKX Ventures and others.
The Bitcoin Layer 2 issuance platform based on the UTXO model and natively integrates RGB++ protocol capabilities, aiming to help developers quickly deploy applications based on UTXO architecture.
L3 main network
U Protocol:The total financing has not been disclosed and is invested by Alfa DAO, YAM DAO and others.
The first BitcoinFi modular Layer 3 infrastructure provides functions such as uBTC and U Bitcoin Thunder Network, and is committed to improving the liquidity and application scenarios of Bitcoin.
02Summarize
From a higher perspective, Bitcoin (BTC)’s value narrative has been developing for more than a decade, and its function as a store of value is now widely recognized.
Macroeconomic factors such as regulatory policies, the introduction of ETFs and interest rate cuts have had a significant impact on its market performance, indicating that Bitcoin is gradually becoming one of the important targets of traditional institutional asset allocation.
As Bitcoin’s value storage attributes are widely recognized by society, its derivative financial products and innovations will become more and more abundant.
Although Layer 2 solutions may face expansion problems, and the challenges based on the UTXO mechanism cannot be underestimated, the Bitcoin track will continue to be improved and developed, which is an inevitable necessity for the industry and social development.
