The ecosystem of Bitcoin is still expanding, and new applications are being developed to enhance scalability and efficiency. Of all these, Layer 2 (L2) has been adopted to carry out transactions more quickly and at a lower cost.Â
Top 10 Bitcoin L2s by $BTC locked pic.twitter.com/z2B5AVLBMP
â Satoshi Club (@esatoshiclub) October 18, 2024
Merlin Leads the Way
At the top of the list is Merlin, with 9303 BTC locked. This places it as a market leader in the L2 space, indicating its user trust. Merlinâs growth underscores the need for better scaling solutions in the Bitcoin network, offering faster transaction speed and decreased fees.
Other Notable L2 Solutions
Following Merlin is Core with 6705 BTC locked. That is why Core has performed better because it targets on offering secure and efficient processing of Bitcoin related transactions. On the third place is Bitlayer, which has 5397 BTC. Bitlayer has incorporated distinct scaling features, making it preferable for users regarding seamless transactions.
The most popular Bitcoin Layer 2, which holds a place with 5209 BTC, is Lightning Network. Its presence in the list is significant since it offers functionality to enable microtransactions at very low fees. Meanwhile, Liquid, with 3834 BTC locked, occupies the fifth place, and at the same time, it serves the purpose of making faster and more efficient cross-exchange or cross-platform transactions.
Emerging Players
The second half of the list brings out some new entrants that are making their way into the L2 market. Rootstock(2757 BTC) and Stacks(1054 BTC) demonstrate consistent growth, especially for developers that strive for smart contract functionality on Bitcoin. A similar example is BOB with 874 BTC, which aims at further user-friendly integration.
Internet Computer and BEVM are well behind this list but have 277 BTC and 80 BTC locked, respectively. Although currently holding fewer amounts, these solutions are gradually gaining their place by focusing on the Layer 2 niche in terms of connectivity and computation.
Implications for Bitcoinâs Future
The continued rise in BTC locked across these Layer 2 solutions reflects the emerging need for scalability within the Bitcoin network. Regarding transaction speed and cost, platforms such as Merlin and Lightning Network are likely to emerge as key intermediaries. Such a tendency is not only advantageous for regular individuals but is also essential for strengthening the overall stability of Bitcoin as the global financial system.
