Bitlayer has successfully raised $11 million in its Series A funding round, led by Franklin Templeton and ABCDE. This new investment brings the total funding for the Bitcoin-focused layer-2 solution to $16 million.

Bitlayer’s Expansion and Development

Bitlayer is set to use this fresh capital to expand its list of supported protocols within its ecosystem, which is built atop BitVM. BitVM allows smart contracts to be executed on the Bitcoin network, enhancing its functionality.

While the firm’s valuation remains undisclosed, the new funding aims to bolster Bitlayer’s Web3 platform development. This platform operates on BitVM, enabling smart contracts in the Bitcoin ecosystem.

Significance of the Funding

BMAN, managing partner of ABCDE Capital, highlighted Bitlayer’s significant role in the Bitcoin network. With over $500 million in total locked value and approximately 300 projects, Bitlayer is a crucial player in the ecosystem.

“As it realizes native verification on Bitcoin, Bitlayer will become the first native Bitcoin layer-2,” BMAN stated.

Future Plans for Bitlayer

The new funds will help Bitlayer expand its ecosystem by supporting Web3 protocols built specifically within it. Additionally, the capital will be used to develop Bitlayer’s Mainnet-V2, a Bitcoin-native rollup. This layer-2 state transition is secured by a Bitcoin-friendly proof system that combines both ZK and fraud proofs.

Market Potential and Projections

In February, Pantera Capital projected that the Bitcoin-based decentralized finance sector could accumulate hundreds of billions of dollars in liquidity through Web3 protocols. This is particularly likely if it achieves similar market shares as those on the Ethereum blockchain.

Historically, decentralized applications on Ethereum have constituted between 8% and 50% of its market cap, with a current figure of around 25%. Based on these proportions, Pantera Capital estimates Bitcoin could see an influx of approximately $225 billion in value.

Additional Support and Investment

In addition to Franklin Templeton and ABCDE, the funding round also saw support from Stake Capital Group, WAGMI Ventures, Skyland Ventures, and GSR Ventures.

For more updates and detailed news on the cryptocurrency market, stay tuned to Global Crypto News.

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