Behind the $1.3 trillion market value of Bitcoin lies the collective anxiety of coin holders—70% of BTC (approximately 14 million coins) lie dormant in static wallets 'sleeping', wanting to use them for earning interest, cross-chain arbitrage, or institutional allocation, but are stuck in the efficiency deadlocks of 'unable to transfer, unaffordable, afraid to use'. Traditional solutions act like 'old conveyor belts', taking several hours and charging tens of dollars to transfer BTC from 'holding wallets' to 'financial scenarios', while also bearing the risk of institutions running away. Ultimately, 90% of coin holders choose to 'continue holding'. Bitlayer's innovation is to launch a 'currency revolution'—restructuring the conversion chain of Bitcoin's value with technology, allowing coin holders to 'use whenever they want, use cost-effectively, and use with peace of mind'. The core is to enhance the overall efficiency from 'holding coins → using currency' by 10 times. This is not a simple functional optimization, but a rewrite of the 'efficiency rules' of Bitcoin financialization.
1. The three major efficiency deadlocks of coin holding: Why do traditional solutions slow down a market value of $13 trillion?
Coin holders looking to turn BTC into 'usable financial assets' face three efficiency barriers: 'slow cross-chain, high costs, and significant risks', but traditional solutions turn each barrier into a 'bottleneck':
1. Cross-chain efficiency deadlock: From holding wallets to financial scenarios, it takes 'half a day to arrive'
Traditional cross-chain (like WBTC) is 'single chain single channel': to transfer mainnet BTC to Ethereum WBTC, it must go through 'mainnet transfer (1 hour) → multi-signature node confirmation (2 hours) → Ethereum arrival (1 hour)', taking over 4 hours in total. When market fluctuations occur, the arrival yield may have already decreased by 5%. Data from Q3 2025 shows that the average arrival time for traditional cross-chain is 3.8 hours, with 30% of transactions delayed over 6 hours due to congestion, making it common for coin holders to 'want to arbitrage but miss the market'.
2. Cost efficiency deadlock: Using BTC once, the fees can 'consume half a month's earnings'
The transaction fee for a single transfer on the Bitcoin mainnet often reaches $10-15. Traditional cross-chain transfers add a 0.5%-1% cross-chain fee—coin holders wanting to earn interest with 1 BTC (about $40,000) on cross-chain transactions incur a fee of $50. If the annualized return is 5%, they need to earn for a month to cover costs. Even more awkwardly, small coin holders (like 0.1 BTC) simply 'cannot afford to use', with fees exceeding 10%, completely discouraging currency usage.
3. Risk efficiency deadlock: Fear of 'using currency and losing it', hesitant to move large amounts of coins
Traditional cross-chain relies on 21 multi-signature nodes (like WBTC), requiring coin holders to entrust their BTC to institutions. Historically, this has exposed $320 million in risks due to node vulnerabilities. Data shows that the average BTC transferred in a single cross-chain transaction is only 0.3, which is 1/8th of their actual holding (2.5 BTC). The fear of 'losing coins' prevents large coin holders from entering financial scenarios, creating a vicious cycle of 'the more they hold, the less they dare to use'.
2. Bitlayer's 'currency efficiency trio': Full-chain acceleration from technology to assets
Bitlayer is not about 'patching up' traditional solutions, but rather creating an efficient combination of 'BitVM Risk Accelerator + Rollup Cost Reducer + YBTC Scenario Connector', each precisely breaking a deadlock:
1. BitVM Risk Accelerator: Solving 'afraid to use', cross-chain that is both fast and secure
The 'risk + speed' of traditional cross-chain is a contradiction. BitVM breaks this contradiction with 'off-chain computation + on-chain verification', where the core is to 'replace institutional trust with mathematical proof':
• Speed breakthroughs: Coin holders initiating BTC transfers to YBTC, with nodes generating BitVM encryption proofs in real-time, eliminating the need for multi-signature node manual review, reducing cross-chain arrival time from 3.8 hours to 90 seconds (BitVM 2.0 beta), enhancing efficiency by 15 times;
• Risk elimination: BTC is always locked in the Bitcoin mainnet UTXO contract, with nodes only transmitting proofs without touching the assets. If malicious behavior occurs, any coin holder can initiate a challenge within 24 hours, automatically destroying 100,000 BTR staked by the node (approximately $500,000), with an attack cost of $230 million (11 times that of WBTC);
• Feedback from coin holders: The proportion of users making large cross-chain transfers (over 10 BTC) increased from 5% to 28%, validating that 'safe acceleration' encourages coin holders to move large assets.
2. Rollup Cost Reducer: Solving 'cannot afford to use', fees reduced by 99%
High 'transaction fees' on the Bitcoin mainnet are a barrier for small coin holders. Bitlayer's Rollup architecture acts like 'batch packaging for express delivery', integrating multiple currency usage demands before submitting to the mainnet:
• Cost plummeting: The fee for a single YBTC cross-chain transfer drops from $10 to $0.01, while the cost of using small coin holdings (0.1 BTC) decreases from $1.5 to $0.001, completely alleviating concerns that 'fees exceed returns';
• No compromise on efficiency: The TPS of Rollup's Layer2 network reaches 3000+, supporting the processing of 50 currency requests per second. Even during market peaks (such as a 10% increase in Bitcoin in a single day), there will be no congestion. In November 2025, during market fluctuations, the success rate of using Bitlayer currency remained at 100%;
• Practical case: Southeast Asian coin holders used 0.05 BTC (approximately $2,000) to cross-chain to Sui for arbitrage, operating 10 times in a single month with total fees of only $0.1, netting $80. If using traditional solutions, the fees would have been $50, resulting in a loss instead.
3. YBTC Scenario Connector: Solving 'unable to transfer', 18 public chains can be used as needed
Traditional cross-chain assets (like WBTC) are only compatible with one chain, requiring coin holders to 'cross transfer multiple times' to change scenarios. YBTC serves as a 'universal plug for multiple chains':
• Full coverage of scenarios: Natively integrated with 18 public chains, including Base, Sui, and Cardano, coin holders stake YBTC (annualized 5.2%) on Base, exchange stablecoins on Sui, and purchase on-chain government bonds on Cardano without repeated cross-chain transfers. The average user utilizes 2.5 scenarios, tripling currency usage efficiency;
• Zero operational threshold: Deep integration with Coinbase Wallet and MetaMask for a one-click currency usage function. Coin holders click 'earn interest on BTC', and the system automatically completes the whole process from 'mainnet BTC → YBTC → target chain scenario', reducing steps from 8 to 2, and the onboarding time for newcomers from 1 hour to 2 minutes;
• Data support: The total amount of YBTC cross-chain has exceeded 42,000 BTC (valued at $1.68 billion), of which 82% comes from coin holding wallets, driving the 'currency usage rate' (the proportion of BTC participating in financialization) from 6% to 13%, more than doubling.
3. The tangible effects of the efficiency revolution: Data from coin holders witnessing change
Bitlayer's 'currency revolution' is not just a concept, but is backed by solid data on the conversion of coin holders:
• Activated scale: As of December 2025, a total of 42,000 dormant BTC have been activated, of which 65% are held by 'old coin holders' who have held for more than a year. The average activation amount per user increased from 0.3 to 1.8;
• Efficiency improvement: The overall efficiency (time + cost + risk) of 'holding coins → using currency' is improved by 10 times compared to traditional solutions, with cross-chain time reduced by 97%, costs lowered by 99%, and risk events eliminated;
• Driven by institutions: Franklin Templeton has absorbed 12,000 institutional coins through YBTC (originally from Grayscale Trust assets), allocating products of 'staking + government bonds' with an annualized return of 4.7%, demonstrating that institutional coin holders can also use their assets efficiently.
4. Value reassessment: The commercial increment behind currency efficiency
The value of Bitlayer is essentially the product of 'currency efficiency × coin holding scale', with long-term potential calculable in two phases:
• Short-term (1-2 years): If the currency usage rate increases from 13% to 20%, it will activate 2.6 million coins (valued at $10.4 billion). As a core efficiency tool, Bitlayer's annual service revenue could reach $1.04 billion, with a conservative market valuation of BTR at $8.3 billion (referencing an 8x PS ratio for financial efficiency tokens);
• Long-term (3-5 years): If 5% of global RWA (approximately $6.5 trillion) connects with YBTC and Bitcoin, the efficiency of Bitlayer's currency usage will directly determine the scale of this connection, potentially becoming a hundred billion-level 'Bitcoin currency infrastructure'.
Conclusion: Currency efficiency is the core remedy for coin holders
The key to Bitcoin's financialization is not to persuade coin holders to 'stop holding', but to allow them to 'hold and use, making it more convenient'. Bitlayer's 'currency revolution' targets the core pain point of 'efficiency', replacing the 'old conveyor belt' of 'holding coins → using currency' with a 'high-speed train'. When the $13 trillion market value of Bitcoin can be efficiently converted into interest-bearing, arbitrage-able, and allocatable financial assets, its potential as 'global financial infrastructure' is truly unleashed—this revolution's starting point is to empower coin holders to dare to use, be able to use, and love to use their BTC.@BitlayerLabs #Bitlayer
