$850 million TVL... Is Bitlayer the qualitative leap for Bitcoin?
Bitlayer is a Layer-2 project on the Bitcoin network aimed at allowing advanced smart contracts to run 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 to run complex logic not available on the traditional Bitcoin chain. Improve scalability by reducing confirmation fees and speeding up transaction execution through Layer-2. Open the door to decentralized financial services such as DEX, liquidity staking, NFTs, and others linked to Bitcoin's security. Establish a trust-minimized bridge for securely transferring BTC between chains and DeFi environments.
Technical aspects
BitVM is an execution and proof method that allows for the execution of complex code while anchoring the security of results to the Bitcoin ledger.
LVM (Layered Virtual Machine) separates the process of executing code from issuing proofs for better performance.
Real-Time EVM (RtEVM) improves contract access to state to reduce latency and make EVM contracts respond faster.
The BitVM Bridge is the bridge that pulls liquidity to Bitlayer and allows for BTC transfers in a way that reduces reliance on a central party; the bridge entered beta/Mainnet phases during the summer of 2025.
Project development and its key achievements
Launch of Mainnet-V1 in April 2024 and start of an operational framework for developers.
Raised significant funding in early stages; Seed round and Series A stages raised total funding to around ~$25 million with support from well-known institutional investors. Reports and figures indicate peak TVL reaching about $850M and supporting over 200 DApps within the environment during earlier growth stages. These are important figures, but you need to keep track of periodic updates on these numbers as they are volatile.
Things you need to know as a follower and potential investor
The bridge is a historically sensitive security point; bridges have been the source of the largest hacks and losses. The BitVM Bridge has made significant strides 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—wider usage may reveal edge cases.
New project tokens are affected by general market movements and news. Profit can be quick, and so can losses.
Monitor the distribution of power among validators and influential parties. High centralization reduces the value of the declared decentralization.
Entry strategy
Use dollar-cost averaging (DCA) instead of entering all at once. Monitor critical points like security audit results, BitVM bridge stability, fluctuations in TVL, and announcements about Mainnet-V2/V3. Have an exit plan with clear scenarios for partial exit in case of a security breach or large liquidity withdrawal. Examine the tokenomics; the distribution of tokens, supply cap, and issuance schedule affect price behavior in the medium and long term.
Bitlayer is an ambitious tech project and one of the serious attempts to connect Bitcoin with the DeFi world. It has initial adoption funding and notable activity numbers but still faces 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 share and monitor the indicators I mentioned.
