In the world of blockchain, Bitlayer Labs is becoming a shining new star in the Bitcoin layer 2 (L2) network space with its pioneering technology and concepts. It is dedicated to bringing unprecedented transformation to the Bitcoin ecosystem through the BitVM paradigm.
1. Origin: Exploring New Potential for Bitcoin
Bitlayer was co-founded by Charlie Hu and Kevin He in early 2024, both experienced blockchain engineers with a strong background in scalable systems and DeFi. Charlie Hu previously participated in Bitcoin infrastructure projects and keenly recognized the untapped potential of Bitcoin beyond being a store of value.
Inspired by Ethereum's L2 expansion, they decided to address Bitcoin's programmability limitations through BitVM, a zero-knowledge proof system, to enable off-chain computation verification on Bitcoin.
The project emerged during the 2023 - 2024 boom of Bitcoin inscriptions and BRC-20 tokens, aiming to create a 'Bitcoin-native programmable layer' that integrates with mainstream L2 and over 80 networks.
Early development focused on building a low-trust cross-chain bridge based on BitVM to achieve non-custodial cross-chain transfers in and out of BTC, while expanding Bitcoin L1 and ensuring its security.
In terms of funding support, in March 2024, Bitlayer completed a $5 million seed round financing led by Framework Ventures and ABCDE Labs, with strategic investors such as Stake Capital and WAGMI Ventures participating.
This funding supports the launch of its testnet and ecosystem development. By April 2024, the 'Ready Player One' developer program attracted over 500 teams. In July 2024, Bitlayer completed an $11 million Series A financing round led by Franklin Templeton Digital Assets and ABCDE, marking the first investment from ETF issuers in Bitcoin L2, bringing total funding to $16 million.
In October 2024, a $9 million extension round led by Polychain Capital and Franklin Templeton pushed its valuation to $300 million, bringing total funding to $25 million.
2. Project Progress: Rapid Iteration and Ecosystem Expansion
In April 2024, the Bitlayer testnet went live, quickly attracting projects like bitSmiley, which are dedicated to developing stablecoins backed by Bitcoin. In May 2024, during the OKX Web3 'Mining Gala' incentive program, Bitlayer's total locked value (TVL) surpassed $300 million within 48 hours, with the program distributing $1.2 million in rewards to ecosystem dApps like Zearn and MacaronDEX. In the same month, the DApp leaderboard competition was launched, offering a $20 million token airdrop and $100 million in liquidity support, nurturing over 500 dApps.
In terms of partnership expansion, in May 2024, it partnered with BridgeM to achieve interoperability between BTCLayer2 and ETHLayer2; in October 2024, it collaborated with Chainlink CCIP for cross-chain functionality; in December 2024, it partnered with Binance Web3 Wallet to host the BTCFi Carnival, integrating 12 projects including Pell Network and Solv Protocol.
Entering 2025, Bitlayer launched its mainnet V2 in the second quarter, introducing a rollup architecture to achieve full functionality for Bitcoin L2 expansion. In April, it integrated with the Monad testnet to enable high-performance cross-chain bridging. In March, collaborations with Arbitrum, Starknet, Base, Sonic, and Plume brought BitVM and YBTC to major blockchains. In August 2025, the BTR token was sold through CoinList and Echo, raising $5 million for ecosystem expansion.
In the same month, YBTC launched on Solana in collaboration with Kamino Finance and Orca, offering 1:1 BTC-backed yields, followed by over 50 YBTC deposits on Folks Finance. From July to August, a promotional campaign with Binance Wallet distributed 30 million BTR. An event in Korea in August attracted 200 attendees, highlighting the Solana cross-chain bridge.
As of August 2025, Bitlayer has 972,000 followers on platform X and has become a sponsor of Bitcoin 2025, with monthly reports consistently showing steady growth in product and media influence.
3. Future Outlook: Leading the Programmable Era of Bitcoin
Bitlayer plans to achieve a $1 billion TVL target by the end of 2025, focusing on verifiable computing, deepening ecosystem integration, and unifying BTCFi.
Despite facing challenges from BitVM optimizations and competitors like Stacks or Rootstock, Bitlayer has secured a favorable position in leading the programmable era of Bitcoin, backed by a total of $46 million in funding and ETF support.
It is expected to further unlock the potential of Bitcoin, driving innovative applications of blockchain technology in more fields and providing global users with a more efficient, secure, and enriched blockchain experience.
