🌎 Hemi Bitcoin Layer 2 Amasses 260 Million

Hemi, a New Bitcoin Layer-2 Protocol, Amasses $260 Million in Total Value Locked

A new Bitcoin layer-2 protocol called Hemi has gained significant traction, with over $260 million in total value locked (TVL) on its private mainnet network. Founded by early blockchain developer Jeff Garzik, Hemi aims to unlock decentralized finance for Bitcoin through staking and yield generation.

Understanding Bitcoin Layer-2 Protocols

Bitcoin L2s, such as Hemi, Core, Bitlayer, and Stacks, function as sidechains connected to Bitcoin’s blockchain. These protocols seek to provide liquidity, facilitate trading, borrowing, staking, and yield farming for popular assets across the Bitcoin and Ethereum ecosystems.

Data from Hemi’s native explorer shows an uptick in deposits, with 2,686 in liquid BTC derivatives and 3,207 dominated in Ether (ETH) staking tokens. This TVL will be deployed onto Hemi’s DEXes and lending protocols to provide Day One liquidity.

Contrasting Trends in the Bitcoin L2 Landscape

Hemi’s claims of surging user deposits contrast with outflows in the Bitcoin L2 landscape. Core, the dominant BTC L2, recorded a 12% drop in TVL over the past week. Other market frontrunners, like Bitlayer, BSquared, Rootstock, AILayer, and Stacks, also noted decreased user balances as markets weathered a broad correction.

Hemi’s Progress and Launch Plans

Hemi’s $260 million in TVL would rank the L2 among the top five protocols in the space. The funds were locked in Hemi’s private mainnet while plans for a public mainnet launch advanced. The team has not shared a tentative date for its launch, but it remains on track.

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