A “full-stack” picture of Bitlayer – from core technology, security model, to ecosystem pieces and recent on-chain data.
Quick overview
• Bitlayer is L2 for Bitcoin: aiming for “security-equivalent” with Bitcoin using BitVM + rollup, EVM-compatible so devs can deploy familiar smart contracts/DeFi. The homepage states median fees of about $0.1/tx.
• Two product pillars:
1. BitVM Bridge – a trust-minimized bridge, locking BTC on L1 and minting YBTC (1:1 BTC) for use in DeFi. Mainnet bridge launches on 16/07/2025.
2. Bitlayer Network (L2) – V1 operates similarly to optimistic rollup, V2/whitepaper adds a mechanism using SNARKs in the settlement process to reduce the trust surface.
Technology & security (the key point)
• BitVM: allows expressing Turing-complete logic on Bitcoin via optimistic validation (malicious actors sending incorrect states will be challenged). This is the foundation for both bridge and settlement → unifying the security model for both state and custody.
• ZK/SNARG in V2: whitepaper describes using Groth16 SNARG and one-time hash-based signatures for settlement claims on L1 → reducing dependence on the pure “no one cheats” assumption of OP-rollup. (V2 roadmap is gradually being implemented).
• EVM-compatible: devs use familiar toolchain (geth-based client). This helps to “port” apps from EVM to Bitlayer quickly.
BitVM Bridge & YBTC assets
• How to use: lock BTC into a contract on L1 → mint YBTC on L2 (and other chains via YBTC.B version for multi-chain). Burn YBTC to withdraw back to original BTC.
• Latest feature: bringing YBTC to Solana via partnership with Kamino Finance & Orca (19/08/2025) – combining Bitcoin's security with Solana's speed, opening multi-chain liquidity.
Ecosystem: notable components
• Infrastructure & partners: linked with Sui, Base, Starknet, Arbitrum, Sonic, Cardano, Plume, along with relationships with AntPool, F2Pool, SpiderPool to operate the BitVM bridge at the infrastructure layer. Chainlink also lists Bitlayer in their ecosystem.
• DeFi/Applications: the ecosystem includes DEX, lending, yield/vault pieces… Some mentioned/tracked names include Avalon Labs, ENZO Finance, TrustIn Finance, LayerBank; previously appeared Macaron, Nekoswap, Pumpad (2024 map).
• Wallet/Explorer/Dev: OKLink explorer, BTRScan, integration documentation with DefiLlama, The Graph/SubQuery, public dev resource kit.
System data & dynamics (as of 23/08/2025)
• Bridge TVL (Bitlayer Bridge): ~$481M (mostly BTC on L1 locked).
• DeFi TVL on the Bitlayer chain (estimated by DefiLlama): ~$430M, stablecoin cap around $436k; on-chain fees in 24h ~$30k (fluctuates daily).
• Network activity: OKX explorer shows ~74M cumulative transactions; ~7.6k active addresses in 24h (activity indicator, changes daily).
Finance & go-to-market
• Token/raise: Bitlayer has a public sale on CoinList (31/07–07/08/2025); backers include Polychain, Franklin Templeton, Framework, OKX Ventures…
Quick comparison & investment/use case points
• Unlike wBTC/centralized bridge: BitVM Bridge focuses on “minimize-trust” and on-chain fraud detection mechanism → reduces the risk of single custodians.
• Compared to other Bitcoin L2s: Bitlayer chooses an EVM first approach (easier to attract liquidity & dev from EVM), while promoting BitVM + ZK at the settlement layer – different from centralized sidechain/peg-in models. (Inference from documentation/whitepaper).
• Investment thesis: if YBTC is widely integrated (Solana, Sui, Base…), Bitlayer could become a “liquidity hub” for BTCFi thanks to the flow of original BTC into multi-chain DeFi.
Risks & things to monitor
1. Liveness/challenge assumptions: BitVM bridge relies on a well-functioning network of watchers/challengers; needs to monitor agent decentralization, slashing rules, withdrawal time.
2. Technical complexity: combining BitVM + new SNARKs → implementation & upgrade risks; read the V2 whitepaper and audit upon release carefully.
3. Multi-chain liquidity & UX: the effectiveness of YBTC depends on deep integration across chains (vaults, DEX, MM) – monitor the actual rollout on Solana/Kamino/Orca and other systems.
4. TVL/volume data: still fluctuating; should check DefiLlama/explorer when making decisions.
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Conclusion
Bitlayer is expanding in the right direction: the BitVM mainnet bridge (07/2025) helps to “pull” original BTC into DeFi more securely (reducing reliance on third parties), while YBTC is the key to expanding multi-chain liquidity (most recently Solana). Combined with EVM-compatibility and low fees (~$0.1), Bitlayer has a time-to-market advantage for devs/DeFi. However, to assert its position, the project needs to prove the security durability of the bridge/settlement, expand real liquidity for YBTC, and maintain a demand-driven dapp ecosystem.
