Bitlayer is a Layer-2 project on the Bitcoin network aimed at enabling advanced smart contracts on Bitcoin and transforming it into a more active and flexible DeFi environment. The official launch of Mainnet-V1 was in April 2024.

The project's goals are to enable Turing-complete smart contracts on Bitcoin so that you can run complex logic not available on the traditional Bitcoin chain. Improve scalability by reducing confirmation fees and speeding up transaction execution via Layer-2. Open the door for decentralized financial services DEX, liquidity staking, NFTs, and others linked to the security of Bitcoin. Create a trust-minimized bridge to transfer BTC between chains and DeFi environments relatively securely.

Technical aspects

BitVM is an execution and proof method that allows running complex code while tying the security of the outcomes to the Bitcoin ledger.

LVM (Layered Virtual Machine) separates the code execution process from proof issuance to enhance performance.

Real-Time EVM (RtEVM) improves the contract's access to state to reduce latency and make EVM contracts respond faster.

BitVM Bridge is the bridge that attracts liquidity to Bitlayer and allows BTC to be transferred in a way that reduces reliance on a central party; the bridge entered beta/Mainnet phases in the summer of 2025.

Project development and its main achievements

Launch of Mainnet-V1 in April 2024 and the start of an actual operating infrastructure for developers.

  1. Raised significant funding in early stages; the Seed round and Series A stages raised total funding to about ~$25 million with the support of well-known institutional investors. There are also reports and figures indicating peak TVL reaching around $850M and supporting over 200 DApps within the ecosystem during previous growth phases. These are important figures, but you need to follow periodic updates on these numbers as they are volatile.

Things you need to know as a potential follower and investor

The bridge is historically a sensitive security point; bridges have been the source of the largest hacks and losses. The BitVM Bridge has made significant progress, but until it proves itself on a large scale, the risk remains.

The existence of Mainnet-V1 and respectable initial growth does not mean that all technical issues have been resolved — broader usage may reveal edge cases.

New project tokens are affected by general market movements and news. Profit can be quick, and so can loss.

Monitor the distribution of power among validators and influential entities; if centralization is high, it diminishes the value of the declared decentralization.

Entry strategy

Use dollar-cost averaging (DCA) instead of entering all at once. Critical follow-up points: results of security audits, stability of the BitVM bridge, increases/decreases in TVL, and announcements about Mainnet-V2/V3. Exit plan: set clear scenarios for partial exits in case of a security breach or significant liquidity withdrawal. Check the tokenomics; token distribution, supply cap, and issuance schedule affect mid-term and long-term price behavior.

Bitlayer is an ambitious technical project and one of the serious attempts to connect Bitcoin to the DeFi world. It has initial adoption funding and notable activity figures, but there are still real risks, especially around bridges, overall security, and volatility. If you believe in the vision and want to take a calculated risk, you might enter with a small stake and monitor the indicators I mentioned.

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