Tron founder unveils Bitcoin layer-2 solution as BTC DeFi breaks $1.2 billion in TVL Tron founder unveils Bitcoin layer-2 solution as BTC DeFi breaks $1.2 billion in TVL
The total value of assets locked on the Bitcoin network has surpassed the $1 billion threshold for the first time, per DeFillama data.
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Updated: Feb. 15, 2024 at 3:17 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tron blockchain founder Justin Sun has unveiled plans for a Bitcoin-based layer-2 solution.
In a Feb. 15 post on the social media platform X (formerly Twitter), Sun revealed his intent to foster decentralization and seamless integration of diverse token formats within the TRON network and the broader Bitcoin ecosystem. This strategic move would enhance interoperability and allow Bitcoin to tap into Tron’s $55 billion stablecoin pool.
“This innovative approach aims to decentralize and intertwine various token types within the TRON network, including stablecoins, with the Bitcoin network and its constructed Layer 2s, like the Bitcoin Ordinals, in numerous combinatory ways,” Sun explained.
While specific timelines remain undisclosed, TRON’s Bitcoin layer-2 roadmap delineates three pivotal phases.
The initial phase concentrates on integrating various TRON token formats with the Bitcoin network through cross-chain technology. Concurrently, Tron DAO aims to bolster Ordinals and Bitcoin layer-2 solutions by investing in intuitive wallets and supportive tools for BRC-20 tokens.
In stage two, TRON will collaborate with multiple Bitcoin layer-2 protocols to allow its users to participate in staking activities across diverse BTC-based layer-2 networks.
The network will launch a layer-2 solution interfacing TRON, BitTorrent Chain (BTTC), and the Bitcoin network for the final phase. Notably, this solution will introduce a Bitcoin-compatible protocol characterized by the agility of a proof-of-stake (POS) blockchain system and the robust security offered by proof-of-work (POW) networks.
Bitcoin’s rapid TVL increase
Bitcoin’s total value of assets locked (TVL) has surpassed the $1 billion mark, marking a notable milestone in the crypto landscape.
According to data from DeFiLlama, Bitcoin’s TVL experienced a staggering surge of nearly 300% over the past week alone, reaching $1.232 billion. This surge catapults Bitcoin into the top 6 networks in terms of TVL, outpacing smart contract-enabled blockchains like Cardano and Avalanche.
The rapid growth in BTC’s TVL can be attributed mainly to the recent Merlins Seal event hosted by Merlin Chain, a native Bitcoin layer-2 network developed by Bitmap Tech. This event launched its governance token, MERL, which incentivizes users to stake assets to earn M-points. Over $800 million, from over 16,000 BTC, has been staked since Feb. 9.
This milestone reflects the growth of DeFi activities within the Bitcoin ecosystem and further solidifies its position as the premier blockchain in the evolving crypto landscape.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.